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- Contraction in UK retail sales eases further in October - CBI
Contraction in UK retail sales eases further in October - CBI
The
Confederation of British Industry (CBI) reported on Monday its latest survey of
retailers showed retail sales volume balance rose to -10 in October from -16 in
September. That marked the sixth consecutive month of decline in retail sales
volume, but at the slowest pace over this period so far.
Economist had
forecast the reading to come in at -20.
The report also
revealed that orders placed on suppliers (-9) also dropped in the year to
October (-4 percent), albeit at a slightly slower pace than September (-9
percent). Meanwhile, retailers expect sales volumes to be broadly flat next
month (+1 percent) and orders to deteriorate next month (-22 percent).
Rain
Newton-Smith, CBI Chief Economist, noted: “Retailers have now endured six
months of falling sales, the longest period of decline since the financial
crisis. The sector is struggling with ongoing digital disruption, layered on
top of cost pressures from a weak pound and the cumulative burden of an
outdated business rates regime. Retailers have also had to contend with the
looming Brexit deadline, which has partly driven a record spike in stocks. The
timing could not be worse: the run-up to Christmas is a crucial time of year
for the retail sector, and not knowing where we will be on November 1st is
adding more strain to an already beleaguered sector.”
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