–Adds Detail To Version Transmitted At 1100 GMT
–UK CBI Distributive Trades: Jan Sales Vol Balance +37% Vs +56% Dec
–UK CBI: Feb Expected Sales Balance +25% vs +35% for Jan
–UK CBI: Jan Orders Volume Balance +3% vs +52% Dec
–UK CBI: Jan Volume of Underlying Sales +45% vs +45% Dec
–UK CBI: Jan Stocks Balance +27% vs +21% in Dec
–UK CBI: Volume of Sales Expected Lowest Since July
LONDON (MNI) – UK retail sales growth slowed in January but with
retailers cutting prices the adverse impact of the value added tax hike
on demand was diminished, the Confederation of British Industry
reported.
The CBI’s January survey showed the sales volume balance fell to
37% from December’s 56%, coming in just below analysts’ median forecast
for a 40% outturn. Retailers expected things to get worse in February,
with the expected sales balance falling to 25%.
Ian McCafferty, the CBI Chief Economic adviser, said “The lure of
seasonal sales and price discounting may have helped mitigate some of
the impact of the VAT increase on volumes. However, retailers expect the
pace of sales growth to slow further next month and orders place on
suppliers flattened out.”
“Consumer demand is expected to be weak in coming months as the
spending power of households is hit by a combination of sharply rising
prices and weak wage growth. Retail can expect a challenging period
ahead,” he added.
Sub sectors which saw the strongest growth were grocers, footwear,
leather clothing had strongest sales. Durable household goods had the
weakest sales.
The underlying, 3 month average, volume of underlying sales balance
held steady in January compared to December at 45%.
The CBI survey was conducted between Jan 4 and 18. All balances in
the survey represent the difference between the percentage of retailers
reporting an increase and those reporting a decrease.
— London newsroom: 00 44 20 7862 7491; e-mail: drobinson@marketnews.com
[TOPICS: M$B$$$,M$BDS$,M$$FI$,MT$$$$,MABDS$]]
