Sharecast News
23 Jun, 2022 11:52

Retail sales struggle as inflation bites - CBI

dl london shopping crowd street retail footfall shops oxford street commuters pedestrians pb
Sharecast / Ch AFleks via Pixabay

Retail sales fell in June, a survey published on Thursday found, as surging inflation weighed heavily on demand.

According to the latest CBI Distributive Trades Survey, the retail sales volumes balance slipped in the year to June, to -5% from -1% in May.

Sales were also seen as poor for the time of year in June, with a balance of -19% compared to zero in May, and were expected to remain below seasonal norms in July.

Ben Jones, lead economist at the Confederation of British Industry, said: "Retail volumes are struggling, as high inflation eats away at consumers’ budgets. The squeeze on household incomes appears to have offset any boost to activity from the extended Platinum Jubilee bank holiday earlier this month.

"There is also clearer signs that a downturn in consumer spending is beginning to ripple out across the wider distribution sector, with wholesalers seeing a 14-month period of robust sales growth come to a grinding halt this month."

Wholesale volumes in the year to June were 4%, down sharply on May’s balance of 30%, with only a modest increase expected in July. Volumes were above seasonal norms, but to a lesser extent that the previous month, at 20% compared to 41%.

Retailers deemed stock levels in relation to expected sales as too high, the survey found, and orders placed with suppliers fell to -8% from May’s balance of 2%, the fourth consecutive month of flat or falling quarters. A further decline is expected in July.

On Wednesday, official figures showed that consumer price inflation had risen to 9.1% in May, the highest in more than 40 years. The Bank of England expects inflation to top 11% in the autumn, when household energy bills are set to rise again.

A total of 100 companies, including 39 retailers, were surveyed between 27 May and 14 June for the CBI Distributive Trades Survey. A balance is the weighted difference between the percentage of respondents noting an increase and those reporting a decrease.


News Source: © 2022 Web Financial Group (UK) Limited. All rights reserved and terms of use apply.

Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.

 

Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.