Retail sales decline eases but Christmas outlook gloomy - CBI

(Sharecast News) - The decline in UK retail sales eased somewhat in November, but the outlook for Christmas was gloomy, according to a survey released on Monday. The Confederation of British Industry's monthly retail sales balanced improved to -11 from -36 in October. However, this marked the seventh consecutive monthly fall, with sales growth set to remain slightly negative next month.

Although retailers said sales were disappointing for the time of year, sentiment recovered slightly in November, with firms expecting their business situation to improve marginally over the next three months.

CBI principal economist Martin Sartorius said: "Retail sales have languished in negative territory for much of 2023, reflecting the impact of strained household finances on the sector's fortunes. Though sentiment has picked up slightly, firms do not feel that a revival in activity is imminent. Given the weakness in trading conditions, it's little surprise that firms are scaling back on their investment ambitions.

"Retailers had hoped the Chancellor's Autumn Statement would offer a reprieve from next year's hike in business rates. While prioritising relief for SMEs and key sectors is understandable, many retailers are being left to contend with another increase in costs at a time when they are least able to afford them."