UK retail sales slide in June - CBI

26th Jun 2024 07:41

(Sharecast News) - UK retail sales fell in June, an industry survey showed on Wednesday, reversing May's short-lived uplift.

According to the latest CBI Distributive Trades Survey, retail sales volumes in the year to June fell sharply, with a weighted net balance of -24. That compares to May's balance of 8.

Sales, which were reported to be well below average for the time of year, were also forecast to continue falling in July, albeit at a notably slower rate, at -9.

Alpesh Paleja, interim deputy chief economist at the Confederation of British Industry, said: "Last month's nascent recovery in sales proved to be short-lived, with retailers reporting a faster-than-anticipated decline this month.

"Unseasonably cold weather in [early] June may have played a role, but it's notable that internet retail sales fell sharply too."

The CBI acknowledged that consumer fundamentals were improving after a long period of sky-high inflation. Headline consumer price index inflation is now 2%, the Bank of England's long-term target, while incomes are rising.

The BoE is also expected to start trimming interest rates shortly, boosting confidence.

"But it's clear that households are still struggling with the legacies of the cost of living crisis, with the level of prices still historically high in some areas," Paleja noted.

A total of 139 companies responded to the survey, 58 of which were retailers. The survey was carried out between 24 May and 13 June.