1. News
June 24, 2014

UK retail sales growth slows in June: CBI

British high street sales growth slowed considerably in June as against last year, according to the latest monthly Distributive Trades Survey of 131 firms from the Confederation of British Industry (CBI).

British high street sales growth slowed considerably in June as against last year, according to the latest monthly Distributive Trades Survey of 131 firms from the Confederation of British Industry

The agency opined that the pace is expected to pick up next month.

Around 29% of retailers said sales volumes increased in June, while 24% said they were down, giving a balance of +4%. The expected score was 23%.

During the period, clothing was the main drag on the slowing of sales growth, with sales falling for the first time since January.

Internet sales volumes in the retail sector rose, however, remained below the long-run average for a second consecutive month.

Sales volumes grew in footwear & leather by 100%, the non-store sector 61%, furniture & carpets 41%, grocers 25%, and hardware & DIY 22%.

In contrast, sales volumes decreased in non-specialised, chemists, recreational goods and clothing.

For next month, 27% of retailers expect sales volumes to increase and 10% forecast them to decrease, resulting in a balance of +17%.

Sales in both the motor trades and wholesale sectors grew strongly, although the latter rose at a slower rate than expected. Both sectors expect sales to increase robustly in the year to July.

CBI Distributive Trades Survey Panel chair Barry Williams said, "Whilst it seems that hopes that retail spending would be boosted by a strong performance by England at the World Cup were as over ambitious as aspirations for a good performance, I’m reassured that consumer confidence is still on the up, as household budgets are being bolstered by falling inflation."