Contraction in UK
retail sales volumes eases in September - CBI
The
Confederation of British Industry (CBI) reported on Wednesday its latest survey
of retailers showed retail sales volume balance rose to -16 in September from -49
in August. That marked the fifth consecutive month of decline in retail sales
volume.
Economist had
forecast the reading to come in at -22.
The report also
revealed that orders placed on suppliers (-9) also fell for the fifth straight
month in September, albeit at a slower pace than in August. Meanwhile,
retailers expect sales volumes to reduce at a slower pace next month (-5) and orders
to be broadly flat in the year to October (+3).
Rain
Newton-Smith, CBI Chief Economist, noted: “Five successive months of falling
volumes tells its own story about the tough conditions retailers are having to
operate in. Add to this the pressures of Sterling depreciation and the need to
plan for potential tariffs and supply issues in the event of a no-deal Brexit
and you get a gloomy picture for the sector. Retailers are also grappling with
ongoing challenges such as digital disruption and the cumulative burden of
government policies. Reforming an outdated business rates system and a more
flexible apprenticeship levy which delivers better value for money could really
help to alleviate the pressure on retailers during these difficult times.”
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