Overview

• CBI's May business sentiment indicator fell to –29%, marking the steepest decline since May 2020.
• Retail sales volumes contracted further year-on-year, dropping to a net balance of –27% in May from –8% in April.
• Firms cite higher national insurance contributions and rising wage costs as key factors weighing on margins.
• Retailers plan to accelerate price hikes, reduce headcount, cut back investment in tight trading conditions.
• Online sales continue to outperform other segments, offering a relative bright spot in a struggling sector.