UK retailers expect sales to fall in June, the latest quarterly Distributive Trades Survey from the Confederation of British Industry showed on Tuesday.
Retail sales were broadly flat in May with the corresponding balance rising to -1 percent versus -35 percent in April. However, a net 4 percent expects sales to decrease over the next month.
Further, the survey showed that a net 13 percent expect their business situation to deteriorate in the next three months, the quickest fall since November 2020.
Average selling prices increased at a rapid pace in May but retailers expect price growth to ease somewhat over the next quarter.
“Despite retail sales returning to their average for the time of year in May, the outlook for the sector has worsened due to high inflation and broader economic uncertainty,” Martin Sartorius, principal economist at the CBI, said.
As a result, retailers are reining in their investment plans for the year ahead to the greatest extent since May 2020, said Sartorius.