Uk Retail Sales Decline

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Uk Retail Sales Decline

Uk Retail Sales Decline For Third Month

According to the Confederation of British Industry, a decline in retail sales was seen for the 3rd month in a row. The month of August marks yet another month of weak retail sales in the UK.

This has also affected UK retailers and forced them to lower their investment and hiring plans. According to CBI, the monthly retail sales balance in the UK was recorded at -27 in August. This is an improvement from the -43 reading in July but still shows a bearish trend.

Retail Sales Decline To -17 In August

For the next month of September, UK retailers believe that the weakness will continue with an -17 reading. If the September's reading also disappoints, it would make it 4 months of consistent weakness.

Overall, the volume of retail sales was disappointing in August. In fact, contraction was also seen in the motor trade and wholesale sector, which highlights that things are not that great.

Retailers also reported that they are now more cautious about their hiring and investment plans. This is a sign that the demand remains weak and there is no solution in the short term.

It seems that the UK retail sector is going through a hard time as the spending power has been squeezed. On top of that, the weather has also been poor, which has contributed to weaker sales.

According to a recent survey, investment intentions went down from -25 to around -35 in August. In simple words, UK retailers are less likely to invest and expand their business.

Another piece of data also showed a decline in the shop prices based on annual terms. Conditions like these were only seen in October 2021.

The official UK retail sales data was released just a month ago and showed a higher reading in July. However, most of it was due to the warmer weather and the ongoing Euros soccer championship.

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