The Confederation of British Industry (CBI) informed on Thursday its
latest survey of retailers found that the retail sales volume balance tumbled
to -32 in the year to December from -11 in November, pointing to an eighth
consecutive decrease in the sales volumes of the UK’s retailers, the pace of
which was also steeper than in
previous month.
Economists had predicted the reading to slip to -12 in
December.
The report also showed that sales volumes were seen to drop at an even
quicker rate next month (-41). In other survey
results, orders placed upon suppliers fell in the year to December at the fastest
pace since May 2020 (-54 compared to -22 in November) and were predicted to
fall again next month, albeit at a softer pace (-29). Stock volumes were seen by retailers
as “too high” relative to anticipated sales in December (+10 compared to +13 in
November) and were expected to remain broadly unchanged next month (+11).
Commenting on the latest survey, Martin Sartorius, principal economist
at the CBI, noted that the UK retail sector ended 2023 on a glum note, with the ongoing
downturn in sales volumes deepening during the crucial holiday trading period. “Looking
ahead, retailers are bracing themselves for a New Year’s chill, as sales are
set to fall at an even quicker pace next month,” he warned.