MNI DATA: Aug UK Retail Sales Flattered By Weather: CBI

--UK August Retail Sales Volumes Balance +29 Vs +20 In July

By Jai Lakhani

     LONDON (MNI) - UK retailers continued to experience a weather-induced boost

in retail sales volume growth in August, but supplier orders were down again on

the month to the lowest since last October, a CBI survey published Thursday

showed.

     The reported sales volume balance rose to +29 in August, up 9 points from

July and significantly above the expected level of +0 and outpacing the 3-month

moving average of +27. 

     August's result meant that the headline balance has now put together a

string of four consecutive monthly increases after falling into negative

territory in both March and April.

     Dissecting the month's rise in activity, growth was strongest amongst

grocers, non-store goods and non-specialised stores. Meanwhile, carpet and

furniture stores plunged further after falls in June and July to -75 units.

Hardware and DIY stores also saw a marked drop from +36 units in July to -60 in

August.  

     "The summer heatwave has kept shoppers out on the high street, with

consumers splurging on food and drink for barbecues and garden parties. That

said, the outlook for retail remains challenging, with orders falling, prices

rising, employment sliding, and investment drifting down," said Anna Leach, CBI

Head of Economic Intelligence

     Orders placed on suppliers fell even further in August, down 11 points to

-19. July's value was down 28 points from the previous month and August usurped

July as the lowest outturn since October 2017. 

     "The long-term challenges facing the retail sector are significant and

won't be resolved overnight. Subdued real wage growth and digital disruption

continue to pile pressure on firms, while high street retailers continue to

suffer under an out-dated business rates system." Leach added.

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MABDS$,M$B$$$,M$E$$$,MT$$$$]