UK retail sales nudge higher in September - CBI

27th Sep 2024 13:18

(Sharecast News) - Retail sales edged higher in September, an industry survey showed on Friday, boosted by strong online demand.

The latest Distributive Trades Survey from the Confederation of British Industry showed retail sales volumes grew marginally in the year to September, with a weighted balance of 4.

The highest since May, that compares to -27 in August, and ends a three-month downturn.

Sales were still seen as disappointing for the time of year, with a balance of -11. But that was a noticeable improvement on August, when the balance was ten points lower.

Retailers also expected sales to continue growing at a similar pace to September in October, with a balance of 5.

Supporting growth was strong online demand. Sales grew at their fastest rate since June 2023, the CBI noted, with a balance of 18, up from -15 in August.

Many retailers endured a tough summer, with the unseasonable weather hitting clothing brands especially hard and higher prices continuing to weigh on spending choices.

Martin Sartorius, principle economist at the CBI, said: "After a challenging summer, retailers will welcome modest growth in annual sales volumes this month.

"While some firms are beginning to see tailwinds from rising household incomes, others report that consumer spending habits are still being affected by the increase in prices over the last few years."

The survey of 155 respondents, including 53 retailers and 82 wholesalers, was carried out between 29 August and 16 September.

A balance is the weighted difference between the percentage of firms reporting an increase and those reporting a decrease.