UK retail sales drop at fastest pace since financial crisis - CBI
Retail sales in the UK fell at their fastest rate since the financial crisis in the year to August, according to the latest data from the Confederation of British Industry.
The balance of retailers reporting year-on-year growth in sales volumes tumbled to -49 this month from -16 in July, massively undershooting expectations for an improvement to -11. This was the fastest drop since December 2008 and the second weakest reading since records began in 1983.
Just 10% of the firms surveyed said sales volumes in August were higher than the same month last year, while 58% said they were lower.
Only non-store retailing posted a rise in sales, while volumes dropped across most other sectors, including in grocers, clothing and hardware & DIY.
The CBI said internet sales growth remained below its long-run average, with the rise similar to last month, and the same pace of growth expected to continue in September.
CBI deputy chief economist Anna Leach said: "Sentiment is crumbling among retailers, and unexpectedly weak sales have led to a large overhang of stocks. With investment intentions for the year ahead and employment down, retailers expect a chilly few months ahead.
"It is unsurprising that business confidence has deteriorated sharply, with a potential no-deal Brexit on the horizon. But retailers are also buckling under the cumulative burden of costs, including an outdated business rates system and the apprenticeship levy. Businesses will be looking for government action at the Budget in the coming months to alleviate some of these pressures."