Retailers report surprise sales drop in August
British retailers reported an unexpected drop in sales in August, a survey by business lobby the Confederation of British Industry (CBI) showed today, indicating that the Olympics failed to give shops the much-needed boost.
Most British retailers have been struggling because consumers have been reluctant to spend as rising prices, tax increases and high unemployment are hurting their spending power.
The reported sales balance of the CBI’s monthly distributive trades survey fell to -3 compared to economists’ forecasts for an increase to +15.
The expected sales balance for September stood at +6, indicating that retailers expected higher sales than a year ago.
Official retail sales data for July showed unexpected growth, and an upward revision to June, suggesting the sector was on a firmer footing than previously thought.
But the CBI’s quarterly survey showed that retailers took the gloomiest view of their business situation since February 2009, the height of the financial crisis.