MNI: June UK Retail Sales Growth Highest in Nine Months: CBI

--UK June Retail Sales Volumes Balance +32 Vs +11 In May

By Jamie Satchi

     LONDON (MNI) - UK retailers saw a weather-induced boost in retail sales

volume growth in June, with supplier orders also up sharply on the month, a CBI

survey showed.

     The reported sales volume balance rose to +32 in June, up 21 points from

May and settling at the highest level since last September. 

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

of three consecutive monthly increases after falling into negative territory in

March. Looking forward, the expected balance for July held firm at +18.  

     Dissecting the month's rise in activity, growth was fairly broad-based

across retail sub-sectors, with the pick-up in June driven particularly by a

rise in non-store sales, department stores, durable household goods, and "other"

normal goods. 

     Grocers and hardware & DIY stores also fared well, reporting robust sales.

Meanwhile, carpet & furniture stores and clothing retailers saw a drop in sales

volumes in the year to June.

     Anna Leach, CBI Head of Economic Intelligence, said "Higher-than-average

temperatures seem to have had a positive impact on shoppers, with retailers

benefitting from above-average seasonal sales and improved order volumes

growth". 

     Orders placed on suppliers also rose in June, indicative of stronger

demand, up 15 points to +20 -- the highest outturn since last November. 

     "While today's findings will bring some summer cheer to retailers,

underlying conditions for the sector remain challenging - household spending

remains under pressure from the slow recovery in real wage growth and the sector

is still grappling with key structural changes like digital transformation,"

Leach added.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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