Financial News: UK Consumers Held Back Spending Ahead Of Autumn

UK Consumers Held Back Spending Ahead Of Autumn Budget - CBI Survey

10/28/2024 - 10:25:00 (RTTNews)

(RTTNews) - British retailers saw sales volumes decline in October as consumers hesitated to spend due to the uncertainty surrounding the new chancellor Rachel Reeves' budget later this week, results of a survey by the Confederation of British Industry showed on Monday.

The retail sales volumes modestly declined in the year to October after a marginal growth in September, the CBI Distributive Trades Survey showed. The headline survey balance decreased to -6 from +4 in September. The reading was slightly better than the -9 economists had forecast.

Retailers expect sales to be broadly flat next month as suggested by a survey balance of -1.0 percent.

The latest survey was conducted between September 26 and October 15 and covered 177 respondents, of which 70 were retailers and 91 were wholesalers.

"Retail sales volumes slipped back slightly in October, with some firms highlighting increased consumer caution ahead of this week's Autumn Budget as a key factor," CBI Principal Economist Martin Sartorius said.

"This weakness in activity was reflected across the broader distribution sector, with wholesale and motor trade firms also reporting declining sales. Looking ahead, retailers aren't expecting an immediate turnaround, with annual sales set to be flat in November."

The CBI survey showed that retailers reported disappointing sales for the time of year, to a greater extent than in September and expect seasonal sales to remain similarly weak in November.

Meanwhile, internet sales volumes in the year to October grew at solidly for the second month in a row and are expected to grow at a faster pace next month.

Earlier on Monday, the Lloyds Business Barometer survey showed that <a href=https://www.rttnews.com/3484716/uk-business-confidence-sinks-to-4-month-low-ahead-of-budget.aspx?type=gleco target=_blank >UK business confidence sunk to a four-month low</a> in October as employers adopted a cautious stance ahead of the new government's first budget that is scheduled to be delivered on October 30.

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