Contraction in UK retail sales volumes eases in September - CBI

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 Reforming an outdated business rates system and a more flexible apprenticeship levy which delivers better value for money could really help to alleviate the pressure on retailers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.”