UK March sales hit by trade tensions, policy doubts: CBI

Retail sales volumes across the UK dropped sharply in the year to March, marking the sixth consecutive month of decline, according to the latest CBI Distributive Trades Survey. Retailers also expect the downturn to continue into April, albeit at a slower pace.

The survey’s weighted balance for retail sales volumes plunged to -41 per cent in March, down from -23 per cent in February. Expectations for April suggest a softer decline, with a projected balance of -30 per cent.

Sales were once again deemed below seasonal norms, with March figures at -36 per cent, compared to -34 per cent in February. Similar underperformance is expected in April (-35 per cent).

Online retail continued to struggle, with volumes falling -27 per cent year-on-year in March, mirroring February’s -28 per cent drop. The outlook for April remains weak at -26 per cent, CBI said in a release.

Wholesale sales volumes saw an even steeper fall, contracting -29 per cent in March versus -19 per cent in February. A slightly slower decline is forecast for April (-25 per cent).

“Firms across the retail and wholesale sectors reported that global trade tensions and the Autumn Budget are weighing on consumer and business confidence, which is leading to reduced demand,” said Martin Sartorius, principal economist, CBI.

Across the broader distribution sector—which includes retail, wholesale, and motor trades—total sales volumes declined -32 per cent in March, down from -26 per cent in February. Firms anticipate a softer fall next month (-27 per cent).

Retailers also reported a continued pullback in orders placed with suppliers, remaining unchanged at -38 per cent from February, with April expected to see a similar rate of decline at -41 per cent.

“Reforming business rates, supporting the British Business Bank’s Growth Guarantee Scheme, and properly resourcing the Growth and Skills Levy could support businesses’ investment plans and drive the government’s growth ambitions,” Martin said.

Fibre2Fashion News Desk (HU)