The Confederation of British Industry (CBI) reported on Friday its
latest survey of retailers showed that the retail sales volume balance fell
steeply to -20 in the year to September from +37 in August. This was the worst reading since April (-35).
Economists had forecast the reading to decrease to +10.
The report also revealed that retail sales volumes were also expected to
continue to decrease but at a slower pace next month (-13). In other survey
results, orders placed upon suppliers dropped in the year to September (-16
from +1 in August) and are seen to remain broadly unchanged in October (-2).
Meanwhile, retailers’ stocks in relation to expected sales softened in
September (+8 from +30 in August), but are predicted to strengthen again next
month (+24).
Commenting on the latest survey, Martin Sartorius, Principal Economist
at the CBI, noted that the sales volumes demonstrated
another drop in the year to September, as the cost-of-living crisis continued to
weigh on households’ spending.