UK retailers expect sales to fall again in July amid cost of living crisis, the Distributive Trades Survey results from the Confederation of British Industry showed on Thursday.
A net balance of 5 percent reported a decline in retail sales volumes in June compared to -1 percent in May. A net 2 percent expected sales to drop again in July.
A net 19 percent of retailers said sales were seen as poor for the time of year in June compared to zero in May. A net 25 percent expected sales to remain below seasonal norms in July.
Retail volumes are struggling as high inflation eats away at consumers’ budgets, Ben Jones, lead economist at the CBI, said. The squeeze on household incomes appears to have offset any boost to activity from the extended Platinum Jubilee bank holiday earlier this month.
The survey showed that growth in wholesale volumes slowed sharply in the year to June. The corresponding balance plunged to +4 percent from +30 percent.
“There are also clearer signs that a downturn in consumer spending is beginning to ripple out across the wider distribution sector, with wholesalers seeing a 14-month period of robust sales growth come to a grinding halt this month,” Jones added.
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