Finance
UK Retail Downturn Stretches Into 10th Month, Cbi Says
Published by Global Banking & Finance Review®
Posted on July 28, 2025
2 min readLast updated: January 22, 2026
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Published by Global Banking & Finance Review®
Posted on July 28, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleUK retail sales continue to decline for the 10th month, with rising prices affecting consumer demand. CBI survey shows slight improvement from June.
LONDON (Reuters) -A downturn in British retail sales extended into its 10th month in July as rising prices weighed on consumers, although the pace of the fall was less severe than in June, a Confederation of British Industry survey showed on Monday.
The CBI's monthly gauge of how retail sales compared with a year earlier stood at -34 this month, an improvement on June's -46 but still a sign of weakness in demand.
A measure of expected sales for August rose to -31 from -49, the CBI said.
"Firms reported that elevated price pressures – driven by rising labour costs – and economic uncertainty continue to weigh on household demand, which has contributed to sales volumes falling since October 2024," Martin Sartorius, principal economist at the CBI said.
Employers groups have said finance minister Rachel Reeves' decision to increase the social security contributions they pay for their staff, as well as an increase in the minimum wage, is contributing to higher prices.
Weak demand was mirrored across the distribution sector, with wholesale and motor trades also seeing declining sales, Sartorius said.
Official data published last week showed British consumers shopped more in June after May's big fall with hot weather helping to increase sales of drinks, clothes and car fuel.
However, in the three months to June, sales volumes rose by 0.2%, the weakest increase since the three months to February.
Many households are feeling the squeeze again from an inflation rate that rose to 3.6% in June.
While the CBI's overall sales gauge remained in negative territory, online sales volume rose for a third month in a row, albeit marginally.
The data was collected between June 27 and July 15 and was based on responses from 56 retailers and 91 wholesalers.
(Writing by William SchombergEditing by William James)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It indicates how much more expensive a set of goods and services has become over a certain period.
Consumer demand refers to the desire of consumers to purchase goods and services at given prices. It is influenced by various factors, including income levels, consumer preferences, and economic conditions.
Retail trade involves the sale of goods and services to consumers for personal use. It encompasses a variety of businesses, including stores, online retailers, and direct sellers.
A downturn in retail sales indicates a decline in the volume of goods sold by retailers. This can be caused by various factors, including reduced consumer spending, economic recession, or increased prices.
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