British Retailers Expect Sales To Decline Further: CBI

(RTTNews) - UK retailers expect sales to fall further next month despite festive season and their sentiment about situation over the next three months dropped the most in two years in November, a closely watched survey showed Tuesday.

A net 18 percent of retailers said retail sales volume declined in the year to November compared to -6 percent in October, the latest quarterly Distributive Trades Survey from the Confederation of British Industry revealed. A net 29 percent of retailers expect sales to decline in December.

About 22 percent said sales volumes for the time of year were "poor" versus -25 percent in October.

The index measuring business situation for the next three months declined sharply to -21 percent from -13 percent in August. This was the weakest since November 2022.

Retailers intend to reduce their investment over the coming twelve months. The balance came in at -27 percent, up from -35 percent in the preceding period.

Selling price inflation eased in the year to November, with balance falling to +24 percent from +30 percent in August.

"Retailers continue to report disappointing sales, though trading conditions have shown some improvement since the middle of the year," CBI Lead Economist Ben Jones said.

"Yet the last time retailers felt this gloomy was back in November 2022, at the peak of the inflation shock," Jones added. "This makes the sharp decline in sentiment this month all the more telling."