FX.co ★ UK Retailers Expect Sales To Decline Sharply In August: CBI

UK retailers expect the downturn in sales to gather pace in August, the Distributive Trades Survey from the Confederation of British Industry showed on Thursday.

A net 25 percent of retailers said the sales volume fell in July, which was the biggest fall since April 2022. A net 32 percent said sales are set to fall again next month. The survey showed that orders placed upon suppliers decreased the most since January 2021. The corresponding balance fell to -39 percent from -10 percent in June. Nearly 45 percent of respondents said orders will fall again next month.

"Firms remain cautious about the retail sector's near-term outlook as they pare back on orders and brace themselves for another sales contraction in the year to August," CBI Principal Economist Martin Sartorius said.

Sartorius said cost pressures, a tight labor market and rising interest rates along with uncertain demand conditions, make the current environment difficult to navigate for retailers.

The survey was conducted among 135 companies, of which 59 were retailers.