MNI: UK Retail Sales Growth Slows In Feb; Expectations up: CBI

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

By David Robinson

     LONDON (MNI) - UK retail sales growth slowed in February but a pick-up was

expected in March, the CBI Distributive Trades Survey, published Thursday,

found.

     The reported sales volume balance for February fell to 8 from 12 in January

and 20 in December. While the third consecutive monthly fall in sales volume may

be compatible with the squeeze on consumers' real incomes, the CBI survey's

expected sales balance for March rose to 21 from 13 for February and the outlook

seems brighter.

     The CBI's sales for time of year balance rose to 4 in February from -17 in

January, with the March expected balance was up at 8.

     For the first time since November 2016, retailers predicted their business

situation to improve over the next three months and investment intentions for

the year ahead were the highest since August 2015 in the CBI survey.

     The latest pay deals data suggest a return to positive incomes growth is on

the cards and there is little reason to expect any continued slowdown in retail

spending.

     Anna Leach, CBI Head of Economic Intelligence, said "While trading

conditions remain tough, it's encouraging to see retailers' investment

intentions improving to their highest since August 2015, in addition to signs of

renewed business optimism for the first time in more than a year."

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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