UK retail sales grow at fastest pace since May, CBI says
2024.09.27 06:28
LONDON (Reuters) – British retailers reported the fastest growth in sales since May this month and see a further modest expansion for October, the Confederation of British Industry said on Friday, in a contrast to other more downbeat surveys of consumer sentiment.
The CBI said its monthly retail sales balance rose to +4 in September from -27 in August, while retailers’ expectations for the month ahead rose from -17 to +5, their strongest since April 2023.
However, retailers judged that sales continued to remain below normal for the time of year.
“While some firms within the retail sector are beginning to see tailwinds from rising household incomes, others report that consumer spending habits are still being affected by the increase in prices over the last few years,” CBI Principal Economist Martin Sartorius said.
Earlier this week, Bank of England Monetary Policy Committee member Megan Greene said she saw a chance that consumer spending might rebound more strongly than the BoE was expecting, as it remained below pre-pandemic levels despite a recent recovery in the incomes of many households.
However, consumer surveys by both GfK and the British Retail Consortium show many households remain cautious due to high inflation in 2022 and 2023 and concern about possible tax rises in the new Labour government’s first budget on Oct. 30.
