British retailers had another bad month in July and expect continued weakness in August as bad weather and weak trading conditions continue to hold back demand, the Confederation of British Industry (CBI) reported on Monday.
The CBI noted that their monthly retail sales balance slipped to -43 in July from a reading of -24 in June, the lowest since April.
Retailers had forecast the index to rise to -32 in August, but the figure was still the weakest outlook since February.
"July marked a disappointing month for the distribution sector, with retailers feeling the effects of a combination of unfavorable weather and continued market uncertainty," said CBI chief economist Martin Sartorius.
"Although the decline in sales volume is expected to continue next month, some firms expressed hope for an improvement in market conditions after the general election," he added.
Official retail sales data showed that total sales fell by 1.2% in June compared to their level in May, hampered by erratic weather.
However, high inflation was also a major factor reducing buyers' purchasing power until recently, and the overall sales volume in June was still below the level before the start of the COVID-19 pandemic in February 2020.
The weakness in the retail sector contrasts with a somewhat more positive picture in the overall economy. Wages are now rising faster than inflation and overall output rose by 0.4% between April and May, prompting economists to raise their growth forecasts for 2024.
The CBI survey is based on responses from 49 retail chains between June 27 and July 17.
