Overview

• CBI’s retail gauge registered -32 in August, marking an eleventh straight annual decline, with the sales outlook improving to -16 for September.
• Average retail selling prices surged to +65, the fastest pace since November 2023, though firms expect a slower rise of +43 next month.
• Services firms reported another drop in confidence and activity in August, capping roughly a year of pessimism and pointing to weaker profits, hiring and capital spending.
• Companies cite higher employer taxes and a recent minimum‑wage increase as key cost pressures, with the CBI also warning that proposed worker-rights changes could add expenses.
• The surveys, conducted July 28–Aug. 14 across 56 retailers, 98 wholesalers and 396 services firms, come as the Bank of England stays wary of sticky services inflation despite a softening labor market.