UK: Retail sales hit unwanted dip
UK retail sales have fallen slightly in June, reversing the growth experienced during May, according to the CBI’s latest Distributive Trades Survey.
The survey, covering the period from 27 May to 15 June, shows 33% of retailers reporting a volume sales increase on a year ago, with 34% showing a fall, resulting in a rounded balance of -2%.
That equates to the first fall in sales in a year, reversing an 18% gain during the previous month.
The three-month moving average therefore weakened slightly to +12%, compared to +18% in May.
And 17% of retailers said sales were good for the time of the year, but 36% said they were bad, giving a balance of -19%.
Clothing sales registered their worst performance since January 2010, falling 2%, and retailers as a whole said they expected sales next month to grow by only 2%.
Meanwhile, retailer orders fell 5% and are expected to be flat next month.
“After a year of growth, high street sales volumes fizzled out in June,” said Judith McKenna, chair of the CBI Distributive Trades Panel and CFO of supermarket Asda.
“Consumers are really feeling the pinch as disposable incomes continue to be squeezed by rising prices and weak earnings growth.
“The cost of living is increasing and petrol prices have risen particularly sharply. Shoppers are budgeting hard and cutting back on their discretionary spending, such as on clothes and big ticket household goods.”
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