–UK CBI: July Reported Sales Balance -5% Vs -2% In June
–UK CBI: Aug Expected Sales Balance -12% Vs +2% for July
–UK CBI Jul Reported Sales Lowest Since June 2010
–UK CBI Aug Expected Sales Balance Lowest Since June 2010
LONDON (MNI) – High street sales volumes were lower than expected
in July as rising food and petrol prices blunted consumer spending
power.
The latest CBI survey showed the reported and expected sales
balances fell to their lowest levels since June 2010, coming in weaker
than analysts had expected.
The July reported sales balance fell to -5 from -2 in June, below
analysts median forecast for a zero balance. Retail sales volumes had
plunged in June, falling into negative territory for the first time in a
year, and July showed things deteriorated further on the high street.
Judith McKenna, Asda Chief Financial Officer and chairperson of the
CBI’s Distributive Trades Panel, “Rising prices, especially for fuel,
continue to impact on consumer confidence and make life tough on the
high street.”
“There has been a fall in real disposable income since the
beginning of year with shoppers either cutting back or trading down to
make their declining spending power go further,” she added.
Her comments were echoed Tuesday by Bank of England Monetary Policy
Committee member David Miles who said in a speech that consumers “appear
to largely respond to higher inflation expectations by shopping around
more for better value goods and services, and by cutting back spending.”
The durable household goods balance in the CBI survey was -76, with
the very weak reading reflecting the trend in the official data for
consumers to cut back on discretionary spending, particularly on bigger
ticket items.
The survey was conducted between Jun 28 and July 19.
–London bureau: 44 20 7862 7492; email: ukeditorial@marketnews.com
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