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UK Retail Sales Fall For Second Month In June: CBI

By Donna Ahern
UK Retail Sales Fall For Second Month In June: CBI

British retail sales fell again in June as household finances were squeezed by the rising cost-of-living but stores expected sales volumes to stabilise next month, as consumer confidence improves and energy prices fall a survey showed on Monday.

The Confederation of British Industry's (CBI) monthly distributive trades index fell to -9 from -10 in May.

Martin Sartorius, CBI principal economist, said retailers would continue to face challenges in the coming months.

"Another contraction in sales volumes attests to the difficult trading environment being faced by the retail sector. Households' finances are still under pressure from high inflation," Sartorius said.

Expected Sales


A measure of expected sales in the month ahead remained flat at zero.

The CBI said retail sales volumes were average for the time of year at +1% in June compared with -18% in May, and were expected to remain broadly in line with seasonal norms in July at -2%.

Britain's inflation rate came in higher-than-expected at 8.7% in May and April.

With price growth far above the Bank of England's 2% target, analysts expect the central bank to continue raising Bank Rate having already raised it 13 times in a row since December 2021.

Retailers also reported acute price pressures, with price growth in the 12 months to May remaining near multi-decade highs.


Read More: UK Retail Sales Fall In May After April Rise, Outlook Less Gloomy: CBI

News by Reuters, edited by Donna Ahern, Checkout. For more retail stories, click here. Click subscribe to sign up for the Checkout print edition.

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