(Sharecast News) – Retail sales fell in the year to July at the fastest pace since April 2022, with the downturn only expected to get worse, according to the latest Distributive Trades survey from the Confederation of British Industry.
The CBI’s monthly balance of retail sales fell to -25 from -9 in June. Meanwhile, the balance of expectations for the month ahead slumped to -32 from zero.
The gauge for order placed upon suppliers fell at the fastest pace since January 2021, to -39% from -10% in June.
CBI principal economist Martin Sartorius said: “Firms remain cautious about the retail sector’s near-term outlook as they pare back on orders and brace themselves for another sales contraction in the year to August.
“Cost pressures, a tight labour market, and rising interest rates, alongside uncertain demand conditions, make the current environment difficult to navigate for retailers. Now more than ever, business rates reform would go a long way to alleviate cost pressures in the retail sector, which burden them disproportionately compared to other businesses.”
