FX.co ★ UK Retail Sales Fall to 6-Month Low: CBI

In December 2025, the CBI reported that the retail sales balance had declined to a six-month low of -44, down from -32 in November and falling short of market predictions of -30. Retail sales volumes plummeted at their fastest rate in half a year, continuing a downward trend that has been ongoing since mid-2023. The outlook for January is grim, with the balance projected to drop further to -57, marking the weakest forecast since March 2021. Sales were generally considered unsatisfactory for the season, highlighting a disappointing Christmas trading period amid fragile consumer confidence. After two months of growth, online sales reverted to contraction, and wholesale sales experienced their sharpest decline since June 2020. Overall, the distribution sector, encompassing retail, wholesale, and motor trades, saw the most significant drop in sales volumes in over five years. The survey indicates a challenging beginning to 2026, with businesses citing low demand and high operational costs as significant concerns.