Sales of big-ticket items – particularly those tied to the housing market – recorded some of the biggest falls, according to the business organisation’s Distributive Trades Survey.
In all, 52 per cent of retailers said sales volumes were down on a year ago, compared with 25 per cent that said they were up. A negative rounded balance of 26 was the weakest since November 2005 and is only expected to improve to a negative rounded balance of 15 in May, signalling further falls in sales volumes.
Just over half of retailers (53 per cent) said sales volumes for the time of year were poor, while 15 per cent reported them as good. The balance (-38) is the weakest since November 1992 (-43).
However, the CBI points out that sales volumes were boosted last year because Easter fell in April and the country enjoyed a mini-heatwave, lifting the balance of retailers reporting year-on-year sales volume growth to its highest in three years. By contrast, this year, the holiday weekend was in March and the weather was wet and windy.
The three-month moving average, which smooths out monthly volatility, slipped from a positive balance of 1 in March to a negative balance of 9 this month, continuing its downward trend that began last summer.
CBI chief economic adviser Ian McCafferty said: “There is no doubt that consumers are tightening their belts as the mood about the economy and its outlook worsens.”
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