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UK retail conditions worsen again as CBI retail balance sinks
The CBI retail sales balance fell to -48% in August from -26% in July, and firms expect the contraction to ease only to -22% in September.
Forexlive reports that UK retail conditions deteriorated further in August, according to the CBI Distributive Trades Survey. The retail sales balance dropped to -48% from -26% in July, marking the fastest pace of sales volume decline in over a year.
Retailers attributed the weakness to soft demand and worsening sentiment, while continuing to cut investment and staffing plans. Despite expectations that sales will still decline in September, the survey projects the pace of contraction will moderate, with the balance forecast to improve to -22%.
The CBI survey also showed sales running well below normal seasonal levels, with that balance worsening to -26% from -18% in July. Retail sentiment fell more quickly in August, though the report pointed to tentative signs that investment intentions may be stabilizing, with planned capital expenditure reductions the smallest since early 2024.
Employment remained pressured, as retail headcount declined in August, albeit more slowly than earlier in the year. Retail selling prices rose faster than in the previous quarter, and firms expect retail price inflation to accelerate significantly over the coming months.