MNI: UK Feb Retail Sales Growth Slows; Expectations Down: CBI

--UK Feb Retail Sales Volumes Balance +8 Vs In Jan; +20 In Dec

By Jai Lakhani

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

volumes declining for the first time since October 2017. A pick-up is expected

in April, albeit at a subdued pace, the CBI Distributive Trades Survey,

published Wednesday, found.

     The reported sales volume balance for March contracted 8 points offsetting

a growth of 8 in February. This was the fourth consecutive monthly decline in

sales volume. However, the timing of the survey is compatible with the "Beast

from the East", a weather phenomena which greatly added to the ongoing squeeze

on consumers' real incomes. The CBI survey's expected sales balance for April

fell from the 21 figure to 16.

     The CBI's sales for time of year balance fell to -27 in March from 4 in

February, with the April expected balance still reporting a negative figure 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. 

     Ben Jones, CBI Principal Economist, said "Against a backdrop of stagnating

household incomes and weak consumer confidence, the lengthy cold snap earlier

this month has heaped added pressure on retailers... As winter finally loses its

grip, retailers expect a recovery in sales growth in April, albeit a fairly

tepid one. While the latest wage and price data point to the first green shoots

of a recovery in real household incomes, any gains are likely to be modest, with

conditions for retailers likely to remain challenging for some time yet."

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

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

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