UK retail sales slump extends to 11th month as prices rise

Published 27/08/2025, 11:24
UK retail sales slump extends to 11th month as prices rise

Investing.com -- British retail sales declined for the 11th consecutive month in August as shops increased their prices at the fastest rate since late 2023, according to a survey released Wednesday by the Confederation of British Industry.

The CBI’s monthly gauge measuring retail sales compared to a year earlier showed a reading of -32 in August, a slight improvement from July’s -34 and significantly better than June’s -46.

Retailers expressed a less pessimistic outlook for September, with the forward-looking indicator improving to -16.

"Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector," said Martin Sartorius, principal economist at the CBI.

The ongoing sales slump is affecting business planning, with Sartorius noting that "this downbeat outlook is reflected in firms’ plans to scale back investment and hiring."

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