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- Contraction in UK retail sales volumes flat in January - CBI
Contraction in UK retail sales volumes flat in January - CBI
The Confederation of British Industry (CBI) reported on Monday its latest survey of retailers showed retail sales volume balance stood at 0 in January 2020, unchanged from December 2019. That marked the third consecutive month of flat sales volumes. In addition, retailers expect sales volumes to remain unchanged (0) in the year to February.
Economist had forecast the reading to increase to 3.
The report also revealed that orders placed on suppliers decreased further in the year to January (to -17 from -10 in December), and are expected to decline at the similar pace next month (to -19). Elsewhere, stock levels in relation to sales increased above the long-run average in the year to January.
Meanwhile, wholesaling sales volumes returned to expansion in the year to January (+26 versus -10 in December) and are seen to grow in February (+15).
Anna Leach, CBI Deputy Chief Economist noted: "2020 looks set to be another tough year for the sector as growth in households' disposable income is set to remain modest and retailers continue to battle longer-term issues such as digital disruption and the cumulative burden of policy costs. The upcoming Budget provides an opportunity for the Chancellor to support retailers, primarily by fixing the broken business rates system."
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