Retail sales unexpectedly pick up in August - CBI
UK retail sales unexpectedly rose in the year to August but retailers remained pessimistic, according to the latest Distributive Trades Survey from the Confederation of British Industry.
The CBI’s reported sales balance jumped to +37 from -4 in July, coming in well ahead of consensus expectations for a decline to -8.
Still, sentiment remained gloomy, with firms feeling the most pessimistic about the business situation over the next three months since the early phase of the pandemic in May 2020.
The survey also showed that average selling price inflation sped up to its fastest pace since 1985, rising to +87 +77 in May.
Martin Sartorius, Principal Economist at the CBI, said: "While retail sales returned to solid growth in the year to August, firms remain pessimistic about their business situation over the next three months - to the greatest extent since the first Covid-19 lockdown in 2020. This gloom is reflected in retailers’ investment intentions, which continue to be resolutely negative.
"Firms now need support from the Government in order to encourage investment and create sustainable growth. Crucially, business rates reform and a more flexible apprenticeship levy will help with dwindling business confidence."