British retail sales have recorded their gloomiest June performance on record, with figures significantly below the seasonal average, according to a recent survey.
- British retail sales have recorded their gloomiest June performance on record, with figures significantly below the seasonal average, according to a recent survey.
- For the three-month average leading into June, the balance also declined, dropping to -56 from -55, reinforcing the trend of diminishing retail activity.
- Sartorius elaborated that the sharp fall in year-on-year retail sales was mirrored throughout the distribution sector, with wholesalers and motor traders also experiencing significant declines.
The Confederation of British Industry (CBI) reported that its monthly retail sales balance fell to -54 in June, down from -46 in May. This marks the lowest reading since the CBI began tracking these figures in 1983.
For the three-month average leading into June, the balance also declined, dropping to -56 from -55, reinforcing the trend of diminishing retail activity.
CBI lead economist Martin Sartorius commented on the findings, stating, “Retailers reported a gloomy start to the summer, with sales disappointing relative to seasonal norms to the greatest extent in over two years amid depressed consumer sentiment and rising cost pressures.”
The survey’s results reflect a broader slowdown in the economy, as evidenced by a concurrent report from S&P Global that indicated a downturn in business activity, although it does not specifically cover retail.
Sartorius elaborated that the sharp fall in year-on-year retail sales was mirrored throughout the distribution sector, with wholesalers and motor traders also experiencing significant declines.
Adding to the economic concerns, a separate CBI survey released earlier in the week revealed that British manufacturing orders are deteriorating at the fastest rate since September 2020, echoing the sentiment of a slowing economy.
As uncertainty looms, Sartorius highlighted the need for clarity and stability from Britain’s likely next Prime Minister, Andy Burnham. He emphasised the importance of policies aimed at reducing the cost of doing business to help revive consumer confidence and spending.
