Retail sales slide for sixth consecutive month - CBI

Retail sales volumes tumbled in October, industry research showed on Thursday, as higher interest rates and cost of living pressures continued to weigh heavily.

According to the Confederation of British Industry's latest Distributive Trades Survey, the retail sales balance fell to -36 from -14 in the year to September, the sixth consecutive monthly fall.

It was also the worst October reading since 2017, which at the time was the lowest since records began in 1983.

Sales volumes were also judged to be poor for the time of year, at -10, while a balance of 27 reported stocks as being too high relative to expected sales.

Internet sales also struggled, as volumes plunged to -78 from -3 a month previously. It was the fastest pace of decline since the question was added to the monthly survey in August 2009.

Martin Sartorius, principal economist at the CBI, said: "As the festive period approaches, the retail sector remains in a perilous position.

"Sales volumes have been falling year-on-year for six months in a row, as cost of living pressures and higher interest rates weigh on consumer spending.

"Retailers expect the downturn in sales to continue next month, albeit at a slower pace. While slowing inflation should help to bolster households’ income in the coming months, retailers will continue to face headwinds from higher energy and borrowing costs."

The survey, which is not seasonally adjusted, was based on 145 respondents, 66 of which are retailers.