FX.co ★ UK Retail Sector Faces Steep Decline: CBI

The Confederation of British Industry reported a decline in its retail sales balance, reaching -32 in November 2025, compared to -27 in October. This figure fell short of market predictions, which anticipated a balance of -30. This decline marks the first since a substantial drop in June, indicating a pronounced contraction in retail activity, continuing the trend of weakness observed since mid-2023, preceding the annual budget on November 26. Retailers predict that demand will remain subdued as December approaches, with an ongoing sales decline expected, albeit at a slower rate. Business sentiment has weakened considerably, hitting its lowest point in 17 years, with companies forecasting further deterioration of operating conditions over the next quarter. Capital expenditures are projected to decline as investment intentions remain low by historical standards. Employment has also shown a decrease, with retailers expecting a slightly faster reduction in headcount in the coming month. On the pricing front, retail selling price inflation has moved closer to its long-term average.