UK retail sales tumble in April - CBI

25th Apr 2024 12:23

(Sharecast News) - The UK retail sector was hit by a surprise slump in sales in April, a closely-watched industry survey showed on Thursday.

According to the latest Distributive Trades Survey from the Confederation of British Industry, the retail sales volumes gauge tumbled to -44 from 2 in March.

Orders placed with suppliers also dried up, falling to -49 from -22 a month earlier.

In addition, retailers struck a pessimistic tone looking forward, with both orders and sales predicted to continuing falling in May, albeit at a slower pace.

A balance of -30 expected orders to decline, and a balance of 19 forecast a slide in sales.

The CBI acknowledged that this year's timing of Easter was likely to have contributed to the surprise slump.

Alpesh Paleja, CBI lead economist, said: "April's sharp fall was likely related to the earlier timing of Easter this year, so we should take it with a pinch of salt. Indeed, the sector is likely to benefit from some favourable tailwinds this year, as falling inflation continues to drive growth in households' real earnings

"That being said, conditions do remain challenging on the ground. April's fall in sales was faster than expected and retailers aren't overly hopeful about the month ahead.

"Despite inflation headwinds easing, the legacy of high costs remains with us."

A total of 129 companies responded to the survey, 48 of which were retailers. The survey was carried out between 27 March and 15 April.