LONDON (dpa-AFX) - UK retailers registered a strong fall in sales in August, extending the downturn to almost a year, but volumes are forecast to drop at a slower pace in September, the latest Distributive Trades Survey results from the Confederation of British Industry showed Wednesday.
A net 32 percent of retailers said sales declined in August compared to 34 percent in July. However, only 16 percent forecast sales to decrease again in September.
About 19 percent of retailers judged sales volumes to be poor, worse than 10 percent in July. A similar degree of 20 percent said sales will remain below seasonal norms next month.
Retailers expect business situation to deteriorate over the coming quarter but to a lesser extent than last quarter. The corresponding balance rose to -10 percent from -29 percent in May.
Retailers plan to reduce capital expenditure over the coming twelve months and their investment intentions remained poor by historical standards. Retail employment continued to fall at a broadly unchanged rate in the year to August.
Retail selling prices increased at the fastest pace since November 2023 with the balance rising to 65 percent from 35 percent in May. Nonetheless, they forecast selling prices to rise at a slower pace in September.
'Retailers endured another tough month in August, with annual sales volumes falling for the eleventh consecutive month,' CBI Principal Economist Martin Sartorius said.
'Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector,' said Sartorius. This downbeat outlook is reflected in firms' plans to scale back investment and hiring.
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