August CBI survey reveals retail sales volumes dropped to -48%, the steepest decline since mid-2023, amid weak consumer demand.
UK retail sales volumes fell sharply in August, with the CBI Distributive Trades Survey reporting a balance of -48%, down from -26% in July. The decline marks the fastest contraction in over a year, driven by persistently weak consumer demand and deteriorating business sentiment.
Sales remained well below seasonal norms, with the balance worsening to -26% from -18% in July. Retailers expect only a modest improvement in September, forecasting a balance of -22%. Confidence across the sector continued to decline, though investment intentions showed tentative signs of stabilization.
Retail employment also contracted, though at a slower pace than earlier in 2024. Meanwhile, selling prices rose at an accelerated rate, with firms anticipating further inflationary pressure in the coming months.