MNI: UK April Retail Sales Growth Flat; Expectations Down: CBI

--UK April Retail Sales Volumes Balance -2 Vs -8 In Mar; +8 In Feb

By Jai Lakhani

     LONDON (MNI) - UK retail sales growth fell in the year to April, with sales

volumes declining for the second month in a row. The last decline in sales

volume before March was in October 2017. 

     A pick-up is expected in May, with the expected volume of sales at 25, the

CBI Distributive Trades Survey, published Thursday, found.

     The reported sales volume balance for April contracted 2 points after -8 in

March, which offset growth of 8 in February. This was the fifth consecutive

monthly decline in sales volume. The -2 figure was also significantly lower than

MNI analysts median estimate of 15.

     The CBI's sales for time of year balance recovered from -27 in March to -9

in April, however this was still well below the expected balance of -1. Whilst

retailers expect sales volumes and orders placed with supplier to grow next

month, it is unlikely to be strong and this is despite an expected ease of the

squeeze in household incomes. 

     Anna Leach, CBI Head of Economic Intelligence, said "Sales have continued

to disappoint in April, after falling in March... Much of this reflects ongoing

structural changes in the sector as well as the continued squeeze on households'

real incomes. While conditions have improved for households recently -- with

real wage growth inching into positive territory -- we expect further gains in

living standards to remain modest. So the pressure looks set to stay on

retailers for the time being."

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

--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$$$,M$E$$$]