UK retail sales fall at their fastest since financial crisis - CBI

The Confederation of British Industry (CBI) reported on Thursday its latest survey of retailers showed retail sales volume balance dropped to -49 in August from -16 in July. It was the lowest reading since December 2008.

Economist had forecast the reading to come in at -11.

The report revealed that orders placed on suppliers also fell at the quickest rate since December 2008 (-57) and are expected to decline again in September, albeit at a slower pace (-29). Meanwhile, retailers expect the sharpest deterioration in business conditions since February 2009 in the coming months.

According to the report, retail sales volumes dropped across most sectors, including in grocers, clothing and hardware & DIY. Non-store retailing was the only sector that saw a rise in sales.

Anna Leach, CBI Deputy Chief Economist, noted: “Sentiment is crumbling among retailers, and unexpectedly weak sales have led to a large overhang of stocks. With investment intentions for the year ahead and employment down, retailers expect a chilly few months ahead. It is unsurprising that business confidence has deteriorated sharply, with a potential no-deal Brexit on the horizon. But retailers are also buckling under the cumulative burden of costs, including an outdated business rates system and the apprenticeship levy. Businesses will be looking for government action at the Budget in the coming months to alleviate some of these pressures.”