LONDON (MNI) – Retail sales volumes plunged in January after a
strong December, according to the CBI survey.
Retailers had expected a poor January and it turned out to be very
poor indeed. The headline sales volume balance plunged to -22% from 9%
in December, hitting its lowest level since March 2009.
Retailers are not confident things will improve much in February.
The expected orders volume balance fell to its lowest level since
September 2009 while the expected volumes balance only rose modestly, to
-10%.
Ian McCafferty, the CBI’s chief economic adviser, said “Family
budgets under continuing pressure with inflation still high and wage
increases modest. Consumers are still holding off, particularly from
buying big ticket items like washing machines and fridges.”
The sectoral data showed food and non-store sales were the bright
spots in a gloomy picture.
Hardware, DIY stores and durable household good stores all saw
heavy falls compared to a year ago in January, while grocers volumes
were up and non-stores sales, which include mail-order, up sharply.
Both the CBI survey and the official retail sales data showed
strong volume growth in December, and the January survey appears to be
payback.
The headline December CBI sales volume balance came in at 9%, up
from -19% in November and the first positive reading since May 2011.
The official data showed total retail sales volumes rose up 0.6% on
the month in December and up 2.6% on the year and, excluding fuel, up
0.6% on the month and up 1.7% on the year.
The CBI December survey showed retailers expected January sales to
be weak after the strong pre-Christmas period. The expected sales
balance for January was -18%.
–London bureau: 44 20 7862 7491; email: ukeditorial@marketnews.com
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