The
Confederation of British Industry (CBI) announced on Tuesday its latest survey
of retailers showed retail sales volume balance plunged to +8 in the year to December
from +39 in the previous month. This was the lowest reading since March.
Economists
had expected the reading to decrease to +13.
The
report also revealed that retail sales volumes were forecast to grow at a similarly weak pace next month (+5). In other
survey results, stocks in relation to expected sales recorded a positive
balance for the first time since February (+22, up from -2 in November), and they
were seen to be broadly adequate in January next year. The pace of growth of orders
placed upon suppliers quickened last month (+55, up from +30), but was forecast
to slow in the year to January (+25).
Commenting
on the latest survey, CBI lead economist Ben Jones noted that it confirmed the newly-detected Omicron coronavirus variant had a “chilling impact” on retailers’ activity early this month.
“On the supply side, retailers have been making progress in building up stocks,
which were seen as more than adequate to deal with expected demand over
Christmas,” he added. “The concern now is the potential for rapidly rising
sickness and staff absences to cause renewed disruption to supply chains in the
New Year.”