January 26, 2023 11:00 GMT
CBI Survey Highlights Q1 Retail-Sector Woes
UK DATA
MNI (London)
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UK JAN CBI REPORTED SALES -23 (EXP -17); DEC +11
UK JAN CBI EXPECTED SALES FOR FEB -15
- The CBI distributive trades report for January signalled a weak start to 2023. The reported retail sales index fell by -23%, the largest decline since April '22, following a brief December rebound (Note: the CBI data tends to be relatively volatile).
- This was in contrast to the December national ONS print which reported another contractionary month of sales. Combined with a further fall in the GfK consumer confidence indicator, lacklustre spending outlooks remain a concern for the BOE but in line with its projections.
- Sales are seen declining at a softer pace in February, yet the substantial slowdown in orders to suppliers implies the sector is bracing for a muted first quarter as inflation dampens consumer demand and reduces profit margins.
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