UK retail sales continue to struggle in July - CBI
By Michele Maatouk
Date: Monday 28 Jul 2025
(Sharecast News) - UK retail sales continued to struggle in July as rising prices and economic uncertainty weighed on household demand, although the pace of decline slowed from June, according to a survey released on Monday by the Confederation of British Industry.
The retail sales volume balance was -34%, up from -46% a month earlier, but marking the tenth consecutive month of decline.
The balance of expected sales improved to -31 in July from -49 the month before, with retailers expecting sales to fall at a broadly similar pace next month.
Martin Sartorius, principal economist at the CBI, said: "Retail annual sales volumes continued to fall in July, although the pace of decline moderated from June's sharp drop. Firms reported that elevated price pressures - driven by rising labour costs - and economic uncertainty continue to weigh on household demand, which has contributed to sales volumes falling since October 2024. These trends of weak demand and uncertainty were mirrored across the wider distribution sector, with wholesale and motor trades also seeing declining sales.
"With long-term strategic ambitions outlined, the government must now seek to build shorter term confidence in its growth mission. It can do this by collaborating with business to deliver an Autumn Budget that acknowledges the burden firms are facing and sets clear policy delivery targets. This includes providing clarity on how the government will deliver its action plan to tackle regulatory barriers to growth, position businesses to invest in the people they need through a flexible Growth and Skills Levy, and find an appropriate landing zone for the Employment Rights Bill."
Survey data was collected between 27 June and 15 July. There were 163 respondents, 56 of which were retailers and 91 were wholesalers.
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