Sentiment among UK retailers nosedives in Nov: CBI survey

Retail sales volumes declined moderately in the year to November (weighted balance of minus 18 per cent from minus 6 per cent in October), with retailers judging sales to be ‘poor’ for the time this year, to a similar extent as the previous month.

Sales are set to remain below seasonal norms in December (minus 15 per cent), albeit to a lesser extent.

Looking ahead to December, retailers expect annual sales growth to deteriorate at a faster pace next month (minus 29 per cent). Volumes are set to remain below seasonal norms next month, albeit to a lesser extent than in November, with retail firms anticipating a rise in online sales, a CBI release said.

Weak consumer demand and falling confidence in their business situation is reflected in retailers’ investment plans. Firms expect to scale back capital expenditure for the next 12 months (compared to the past 12 months).

Employment in the UK retail sector fell in the year to November at the slowest rate for a year—minus 18 per cent from minus 25 per cent in August, though retailers expect headcount to be broadly unchanged in the year to December.

Selling price inflation eased in the year to November (plus 24 per cent from plus 30 per cent in August), remaining below the long-run average for the third consecutive quarterly survey (plus 41 per cent). However, retailers expect this measure to accelerate next month.

Fibre2Fashion News Desk (DS)