UK retailers expect sales volume to fall further in May, according to the Distributive Trades Survey conducted by the Confederation of British Industry.
A net 35 percent of retailers said sales volumes declined in the year to April, in contrast to a net 9 percent reporting an increase in March and remained below the long run average of +18 percent, the survey showed Wednesday.
A net 8 percent of retailers forecast sales volumes to fall in May, but this was much slower than the current month estimate.
The balance for orders placed upon suppliers dropped to -7 percent in April, the first decline in 13 months, from +3 percent in March.
Further, the survey found that internet sales volumes continued to decline but at a slower pace than in March. A net 36 percent registered a fall in sales.
Retail sales were below seasonal norms in April as consumer spending continued to shift back towards services and rising prices impacted households’ spending power, Martin Sartorius, a principal economist at the CBI, said. “Rapid inflation means that the cost-of-living crisis is going nowhere soon.”