UK Retail Sales Slow To Seven-Month Low
The UK’s yearly retail sales growth slowed to a seven-month low in June, the Confederation of Britis…The UK’s yearly retail sales growth slowed to a seven-month low in June, the Confederation of British Industry has announced.
Falling demand for food and clothing led to the slowdown, said the group.
Retail sales dropped to +4 in June from +16 in the previous month, according to CBI distributive trades survey. It was the lowest figures since last November.
Expectations for the coming month are also subdued, with the index dropping to a five-month low.
The UK’s economic recovery was driven by consumer demand. However, wages have lagged behind. On Tuesday, Bank of England governor Mark Carney said that stronger wage growth was fundamental for sustained consumption – a key engine of British growth. He added that there was still plenty of slack in the labour market for the economy to improve.
Barry Williams, chairman of the CBI survey panel and a senior executive at Asda, said, “After a recent improved run, a fall in clothing and food sales has contributed to a disappointing month.”
The CBI survey involved 63 retail chains and was completed between May 28 and June 12.