In October, British retailers experienced a decline in sales volumes as consumers were hesitant to spend amid uncertainties concerning the budget to be presented by the new Chancellor, Rachel Reeves, as reported by the Confederation of British Industry (CBI) on Monday.
According to the CBI Distributive Trades Survey, retail sales volumes saw a modest decline in the year leading up to October, following slight growth observed in September. The survey's primary indicator fell to -6, compared to +4 in September, a figure that was slightly better than the economists’ forecast of -9.
Retailers are anticipating that sales will remain largely unchanged in the upcoming month, as suggested by a survey balance of -1.0 percent.
This recent survey took place from September 26 to October 15 and involved 177 participants, including 70 retailers and 91 wholesalers.
Martin Sartorius, CBI Principal Economist, remarked, "Retail sales volumes dipped slightly in October, with some businesses attributing increased consumer caution to the upcoming Autumn Budget as a significant factor."
He added, "This subdued activity was mirrored across the wider distribution sector, with wholesale and motor trade companies also reporting a decrease in sales. Retailers are not expecting a rapid recovery, with sales likely to remain stagnant in November."
The CBI survey highlighted that retailers experienced disappointing sales for the time of year, more so than in September, and foresee seasonal sales to continue being weak in November.
Conversely, internet sales volumes for the year to October displayed solid growth for the second consecutive month and are projected to expand at a quicker rate in the coming month.
Additionally, the Lloyds Business Barometer survey, released earlier on Monday, indicated that UK business confidence fell to a four-month low in October as employers took a cautious approach before the new government's first budget announcement scheduled for October 30.
