🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

UK retail sales stumble again in July, CBI says

Published 07/29/2024, 06:03 AM
Updated 07/29/2024, 06:07 AM
© Reuters. Shoppers walk along Regent Street in London, Britain, July 9, 2024. REUTERS/Hollie Adams/ File Photo

By David Milliken

LONDON (Reuters) - British retailers suffered another bad month in July and expect further weakness in August as poor weather and generally weak trading conditions continued to hamper demand, the Confederation of British Industry said on Monday.

The CBI said its monthly retail sales balance sank to -43 in July from June's reading of -24, its lowest since April.

Retailers forecast the index would improve to -32 in August, but that was still the weakest outlook since February.

"July marked a disappointing month for the distribution sector, with retailers feeling the sting from a harsh mix of unfavourable weather conditions and ongoing market uncertainty," CBI principal economist Martin Sartorius said.

"While the downturn in sales volumes is set to continue next month, some firms expressed hope for an improvement in market conditions post-general election," he added.

Official retail sales data showed that sales volumes dropped by 1.2% in June from their level in May, hampered by unseasonably cool weather.

However, high inflation has also been a major factor eating into shoppers' purchasing power until recently, and overall sales volumes in June were still below where they were just before the start of the COVID-19 pandemic in February 2020.

© Reuters. Shoppers walk along Regent Street in London, Britain, July 9, 2024. REUTERS/Hollie Adams/ File Photo

The weakness in retail contrasts with a somewhat brighter picture in the rest of the economy. Wages are now rising faster than inflation and overall output increased by 0.4% between April and May, prompting economists to upgrade their growth forecasts for 2024.

The CBI survey was based on responses from 49 retail chains between June 27 and July 17.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.