The Confederation of British Industry (CBI) reported on Monday its
latest survey of retailers showed that the retail sales volume balance tumbled
to -19 in the year to November from +18 in October, pointing to a rapid decline
in retail sales volumes after a sharp rebound in the previous month.
The report also revealed that retail sales volumes are seen to decline at
a similar pace next month (-21). In other survey results, employment in retail declined
in the year to November (-17 from +13 in August), recording also its first
contraction since August 2021. A further decrease (-12) is expected in
December. The average selling price rose at a pace just shy of its 37-year high
recorded in the previous quarterly survey (+82 from +87 in August) and is
anticipated to increase at a broadly similar pace next month (+81%). Retailers
remained significantly pessimistic about the business conditions over the next
three months (-22). They plan to cut investment in the next 12 months compared
to the previous 12 months (-38 from -31- in August), to the greatest extent since May
2020.
Commenting on the latest survey, Martin Sartorius, principal economist
at the CBI, noted that the UK continues to be buffeted by economic headwinds, compelling retailers
to stay notably downbeat about their future business prospects, and this pessimism
was reflected in investment intentions worsening to the greatest extent since
May 2020.