High street trading this month fell to its worst levels in a quarter of a century,
the CBI said yesterday.
The business group’s latest distributive trade survey is the latest indication that consumers are avoiding the high street, pointing to a sales slump on a scale not seen since the early Eighties.
The survey, the latest piece of gloomy news for the UK economy, found a balance of 36% of firms reporting weaker sales volumes in the first half of July compared with the same period a year ago – the worst result since the survey began in 1983.
Sales for the time of year were described as poor by a balance of 46% of firms, and the CBI said the situation is unlikely to improve next month, with 32% expecting weaker sales volumes in August.
Andy Clarke, chairman of the CBI Distributive Trades Panel, said: "It is turning out to be a very grim summer for many retailers. Pressure from higher fuel and food prices is prompting many people to rein in their spending."
The demand for ‘big-ticket’ household goods, clothes and home furnishings fell dramatically, with every retailer in the sector reporting lower sales than a year ago.
The survey's less volatile three-month moving average of sales volumes also reached its lowest point since November 2005 - continuing a downward trend which began last summer - with a balance of 20% of respondents reporting weaker sales.
The CBI said 153 firms took part in the survey, covering 20,000 outlets at firms responsible for 40% of UK retail employment.
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