British retail sales hit new low in July, CBI

British retailers faced a challenging July, with the Confederation of British Industry (CBI) reporting a sharp decline in retail sales balance to -43 from June’s reading of -24, the lowest since April.

This downturn reflects the impact of poor weather and ongoing market uncertainty on consumer demand. Retailers anticipate a slight improvement to -32 in August, though this remains the weakest forecast since February.

Sales volumes fell by 1.2 per cent in June compared to May, largely due to unseasonably cool weather and high inflation that has dampened consumer purchasing power.

Despite these challenges, broader economic indicators show some positive trends, with wages rising faster than inflation and a 0.4 per cent increase in overall output between April and May.

The CBI survey, conducted from June 27 to July 17, included responses from 49 retail chains.