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- UK retail sales volumes decline sharply in January - CBI
UK retail sales volumes decline sharply in January - CBI
The
Confederation of British Industry (CBI) reported on Tuesday its latest survey
of retailers showed retail sales volume balance stood at -50 in the year to January
2021, down sharply from -3 in December 2020. That was the lowest reading since
May 2020, pointing to a steep decline in retail sales volumes amid tightened restrictions
across the UK.
Economist had
forecast the reading to decrease to -28.
In addition, retail
sales volumes are expected to drop at a broadly similar pace in the year to
February (-47).
The report also revealed that the orders' balance was also the weakest since May 2020 (balance of -45, from -4 in December) with a similar decline seen next month (-44). Meanwhile, stock levels in relation to expected sales increased but remained below its long-run average (balance of +12, from +3), and are forecast to remain broadly similar next month (+11).
"Today’s data brings home the ongoing challenges of lockdown for the retail sector, as sales volumes weaken once again,” noted Ben Jones, CBI Principal Economist. “With the lockdown likely to remain in place in the near-term, retailers expect this weakness to continue. It is therefore vital that government support continues in parallel to restrictions.”
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