Contraction in UK retail sales eases further in October - CBI

The Confederation of British Industry (CBI) reported on Monday its latest survey of retailers showed retail sales volume balance rose to -10 in October from -16 in September. That marked the sixth consecutive month of decline in retail sales volume, but at the slowest pace over this period so far.

Economist had forecast the reading to come in at -20.

The report also revealed that orders placed on suppliers (-9) also dropped in the year to October (-4 percent), albeit at a slightly slower pace than September (-9 percent). Meanwhile, retailers expect sales volumes to be broadly flat next month (+1 percent) and orders to deteriorate next month (-22 percent).

Rain Newton-Smith, CBI Chief Economist, noted: “Retailers have now endured six months of falling sales, the longest period of decline since the financial crisis. The sector is struggling with ongoing digital disruption, layered on top of cost pressures from a weak pound and the cumulative burden of an outdated business rates regime. Retailers have also had to contend with the looming Brexit deadline, which has partly driven a record spike in stocks. The timing could not be worse: the run-up to Christmas is a crucial time of year for the retail sector, and not knowing where we will be on November 1st is adding more strain to an already beleaguered sector.”