The
Confederation of British Industry (CBI) reported on Monday its latest survey of
retailers found that the retail sales volume balance improved to -7 in the year
to February from -50 in January, pointing to the 10th consecutive decline in
the sales volumes of the UK’s retailers, the pace of which, however, was the weakest in the current sequence.
The report also
showed that sales volumes were seen to decrease at a quicker rate next month
(-15). In other survey results, selling price inflation
in the year to February moderated to its lowest level since mid-2021 (+54) but remained
above its long-run average (+42), with a similar annual growth forecast for March
(+54). Meanwhile, employment in the retail sector reduced for the sixth
successive quarterly survey (-19), with the fall set to continue next month
(-20). In addition, retailers continued to predict cuts in capital spending in
the year ahead (-9), while investment plans were the least negative in their
two-year stint of being in the red.
Commenting on
the latest survey, Martin Sartorius, principal economist at the CBI, noted that the
slump in the UK’s retail activity eased in February following an exceedingly
dreary start to the year. “Nevertheless, with sales expected to continue
falling next month, retailers are still planning to reduce headcount and
investment going forward,” he added.