UK Retailers Suffer 11th Month of Downturn, Prices Rise Sharply
- A downturn in British retail sales entered its 11th consecutive month in August, and shops raised their prices by the most since late 2023, a Confederation of British Industry survey showed on Wednesday.
- The CBI's monthly gauge of how retail sales compared with a year earlier was little changed at -32 from July's -34 but better than a dip to -46 in June. The outlook for September improved to -161.
- "Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector," Martin Sartorius, principal economist at the CBI said.
- Many employers have said they are feeling the strain from a decision by finance minister Rachel Reeves to make them pay higher employment taxes from April at the same time as a sharp increase in Britain's minimum wage.
- The CBI's measure of average selling prices in the 12 months to August rose to +65, the fastest rate since November 2023, from -35 in May, but the expected increase for September was a slower +43.
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1The CBI’s monthly retail gauge shows the net balance of retailers reporting higher versus lower sales compared with a year earlier. A negative number means more retailers saw sales fall than rise, with September’s –16 indicating sales remain weak but the decline has eased from June’s sharper –46 and August’s -32.
(Sources: Reuters)