UK retail sales fall sharply in March - CBI

The Confederation of British Industry (CBI) reported on Wednesday its latest survey of 105 firms, of which 50 were retailers, showed retail sales volume balance fell sharply to -18 in March from 0 in February, marking the fastest contraction in 17 months.

Economist had forecast the reading to come in at +5.

The report notes, however, that sales volumes are expected to improve in April to +15.

Orders placed on suppliers also decreaced in the year to March (to -13 from +7 in February), but are expected to return to modest growth (to +6) in April.

The CBI suggests that it is possible that y-o-y sales growth in March has been distorted by the later timing of Easter this year. 

According to the report, retail sales dropped in five sub-sectors, with volumes in the grocers’ sector staying broadly flat (-3), following strong growth in the year to February (+45). Among the biggest negative contributors to the headline figure this month included recreational goods (-67), hardware & DIY (-62) and other normal goods (-42).

Meanwhile, y-o-y growth in internet sales volumes slowed in March (to +21), representing the slowest growth pace for 12 months.