British retailers have reported a third consecutive month of falling sales in August, the Confederation of British Industry (CBI) said on Tuesday.
Retailers added that they expect another decline in September, prompting them to lower their hiring and investment plans.
The CBI said its monthly retail sales balance stood at -27 this month, a less severe fall than July’s -43 but the second-weakest reading since April.
Retailers predicted another weak month in September with a gauge of sales expectations at -17.
CBI principal economist Martin Sartorius said, “Retail sales volumes continued to disappoint in the year to August, with contractions also being seen in the wholesale and motor trade sectors.
“Retailers reported increased caution regarding their investment and hiring plans, which seemed to reflect concerns about persistently weak demand conditions.”
The cost-of-living crisis' impact on consumers’ ability and willingness to spend money has hit the retail sector hard.
Poor weather in recent months has also hurt sales.
A quarterly version of the survey showed investment intentions dropping to -35 in August from -25 in May and a measure of expected employment plans fell to -28 from -18.
A gauge of retailers’ expected selling prices eased to +15 from +30 in May.
Separate data published on Tuesday showed shop prices fell in annual terms in August for the first time since October 2021.
Official retail sales data released earlier this month showed British retail sales edged up in July, boosted in part by the men’s Euros Soccer Championship and warmer weather.
The CBI survey was based on responses from 50 retail chains between 29 July and 14 August.
Read More: UK Food Retail Growth Accelerated By Warm Weather – NIQ
