Search Share Prices
UK retail sales miss expectations in April - CBI
(WebFG News) - Retail sales growth in the UK missed expectations in April, according to the latest quarterly distributive trades survey from the Confederation of British Industry.
The retail sales volume balance increased to -2 from the five-month low of -8 in March, falling short of expectations for a balance of +5.
The survey found that most retailers expect volumes to increase next Month, with 33% seeing a jump higher and 8% forecasting a decline, giving a balance of +25.
Anna Leach, CBI head of Economic Intelligence, said: "Sales have continued to disappoint in April, after falling in March. But expectations for next month are looking a little healthier.
"It's no secret that UK high streets have endured tough trading conditions in recent months, with some big names closing or cutting back. Much of this reflects ongoing structural changes in the sector as well as the continued squeeze on households' real incomes. While conditions have improved for households recently - with real wage growth inching into positive territory - we expect further gains in living standards to remain modest. So the pressure looks set to stay on retailers for the time being."
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "The CBI's survey indicates that retail sales have failed to rebound following their sharp fall in March, suggesting the recent weakness of the official data isn't entirely linked to the bad weather.
"April's reported sales balance is significantly below 2017's average, +11, and well down on its +20 average during the consumption boom between 2014 and 2016. What's more, the balance should have been boosted by the timing of Easter. The balance is an annual comparison of sales, and whereas this April's survey covered the whole of the Easter break, last April's only covered up to the day before the holidays began and so missed some of the usual uplift to sales."
Tombs said sales are likely to continue to undershoot their expectations, given that households' borrowing costs will rise slowly this year, take-home pay has just been squeezed by an increase in minimum pension contributions and the wobbling housing market is undermining confidence.