MNI DATA: UK Retail Sales Hold Up In September: CBI Survey

--UK September Retail Sales Volumes Balance +23 Vs +29 In August

By Jai Lakhani

     LONDON (MNI) - UK retailers continued to experience solid retail sales

volume growth in September, with supplier orders moving to a three-month high, a

CBI survey published Wednesday showed.

     The reported sales volume balance fell to +23 in September, down six points

from August, but still above the MNI median of +17.0. However, the number does

fall slightly below the three month moving average of +24.0 

     September's outcome means the headline balance has now put together a

string of five consecutive monthly increases after falling into negative

territory in both March and April.

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

normal goods, durable household goods, non-store goods and hardware & DIY. This

could suggest promotions seen in August's ONS retail sales data carried into

September. However, sectors dragging on performance were department stores,

footwear & leather, and recreational goods sub-sectors. The rhetoric from the

ONS of clothing and footwear promotions ending after July and negatively

impacting sales is appearing to also hold true in this instance. 

     "As we head into Autumn, retailers have seen the run of decent sales

figures continue. But underlying conditions are clearly tougher, with the sector

facing significant challenges -- from the squeeze household income, changing

consumer habits to digital disruption," said Anna Leach, CBI Head of Economic

Intelligence

     Orders placed on suppliers rose in September after two consecutive falls.

The reading jumped 18 points to -1. July's value was down 28 points from the

previous month and August usurped July as the lowest outturn since October 2017.

     "With the burden of business rates stifling investment -- against the

backdrop of an already tough trading environment -- the government must deliver

a review of the system over the coming year," 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

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