Published by Global Banking & Finance Review®
Posted on November 25, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleUK retailers' confidence plummets to a 17-year low as sales decline ahead of the budget, with business sentiment at its weakest since 2008.
LONDON (Reuters) -British retailers have reported the sharpest drop in confidence in 17 years and their sales fell again ahead of Wednesday's budget which is likely to include tax increases, according to a survey published on Tuesday.
The Confederation of British Industry said its gauge of how retail sales compared with a year earlier worsened to -32 from -27 in October. The CBI's gauge of expected sales for the month ahead improved to -24 from -39.
But a quarterly measure of firms' business sentiment for the next three months tumbled to -35 from -10 in August, marking the weakest reading since late 2008 when global financial crisis peaked.
"Retailers continue to grapple with a long spell of weak demand, as households remain cautious around day-to-day spending," Alpesh Paleja, the CBI's deputy chief economist, said.
"With all eyes on the forthcoming budget, uncertainty in the run-up has meant that businesses are holding back on plans for investment and hiring," Paleja said.
A measure of inflation in prices charged by retailers fell closer to its long-run average, slowing sharply from August.
The CBI's survey was conducted between October 28 and November 13. Of the 177 respondents, 66 were retailers and 95 were wholesalers.
(Writing by William Schomberg)
Retail trade refers to the sale of goods and services to consumers for personal use. It encompasses various businesses, including stores, online shops, and markets, which sell products directly to the public.
Consumer perception is how individuals view and interpret a brand, product, or service based on their experiences and beliefs. It significantly influences purchasing decisions and overall market behavior.
Business investment involves allocating resources, usually money, into a business venture with the expectation of generating profit. This can include purchasing equipment, expanding operations, or investing in new technologies.
A financial crisis is a situation where the value of financial institutions or assets drops significantly, leading to widespread economic instability. It can result from various factors, including poor financial practices and market failures.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation to maintain economic stability.
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