UK Retail Sales Drop in August, But Stores Expect September Recovery: CBI
CBI Survey Reveals Trends in UK Retail Sales
LONDON, Aug 26 (Reuters) - British retail sales weakened in August after their strongest performance in six months in July, although stores expect a recovery in September, a monthly survey from the Confederation of British Industry showed on Wednesday.
Retail Sales Performance in August
The CBI's headline sales volume balance — based on retailers' assessment of sales volumes compared with a year earlier — fell to a two-month low -48 in August from -26 in July.
Retailers' Sentiment and Sector Impact
"Retail firms grew more downbeat in August as they grappled with sharply falling sales volumes. These weak trading conditions, which were echoed across the broader distribution sector, continued to weigh on retailers' investment and hiring plans," CBI Lead Economist Martin Sartorius said.
Key Survey Findings
Sales and Expectations
- Sales expectations for September point to a pickup to -22, the strongest expectations since March
- Sales for the time of year in August fell to a two-month low of -26 from -18 in July
Business Situation and Investment
- The CBI's quarterly business situation balance fell to -29 in August from -15 in May
- Investment intentions rose to -16 in August from -52 in May, their strongest since February 2024
Employment Trends
- Retailers shed jobs at the slowest pace since November 2025
Survey Methodology
The survey was based on responses from 58 retail chains between July 27 and August 13
(Reporting by David Milliken, Esditing by Paul Sandle)