Finance
UK retailers suffer 11th month of downturn, prices rise sharply, CBI says
Published by Global Banking & Finance Review®
Posted on August 27, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 27, 2025
2 min readLast updated: January 22, 2026
UK retail sales decline for 11 months, with rising prices impacting investment and hiring, according to CBI survey.
LONDON (Reuters) -A downturn in British retail sales entered its 11th consecutive month in August and shops raised their prices by the most since late 2023, a Confederation of British Industry survey showed on Wednesday.
The CBI's monthly gauge of how retail sales compared with a year earlier was little changed at -32 from July's -34 but better than a dip to -46 in June. The outlook for September improved to -16.
"Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector," Martin Sartorius, principal economist at the CBI said.
"This downbeat outlook is reflected in firms' plans to scale back investment and hiring," he said.
Many employers have said they are feeling the strain from a decision by finance minister Rachel Reeves to make them pay more higher employment taxes from April at the same time as a sharp increase in Britain's minimum wage.
The CBI's measure of average selling prices in the 12 months to August rose to +65, the fastest rate since November 2023, from -35 in May but the expected increase for September was a slower +43.
The data was collected between July 28 and August 14 and was based on responses from 56 retailers and 98 wholesalers.
(Writing by William Schomberg; editing by David Milliken)
The UK retail sector has experienced a downturn for 11 consecutive months as of August.
The CBI's survey showed that retail sales compared to a year earlier were at -32, slightly better than July's -34.
Retailers are facing weak demand and higher labour costs, which are putting pressure on their profit margins.
The expected increase in average selling prices for September is a slower +43, down from +65 in August.
Many employers are feeling the strain from increased employment taxes, which is affecting their investment and hiring plans.
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