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1h ago

UK Retail Slump Hits 11th Month as Services Confidence Sinks, CBI Finds

Rising labour costs coupled with weak demand are squeezing margins, curbing hiring, limiting investment.

People shop at the new supermarket in Croydon, South London, Britain, February 1, 2025. REUTERS/Carlos Jasso/File Photo
A view of the Canary Wharf skyline, in London, Britain, October 28, 2024. REUTERS/Hollie Adams/File Photo
Britain's Chancellor of the Exchequer Rachel Reeves leaves 11 Downing Street, ahead of presenting the Spending Review to Parliament, in London, Britain, June 11, 2025. REUTERS/Jaimi Joy/File Photo
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Overview

  • CBI’s retail sales balance registered -32 in August, marking an 11th consecutive monthly decline, with the September outlook improving to -16.
  • Average retail selling prices over the 12 months to August rose to +65, the fastest pace since November 2023, with a slower +43 increase expected in September.
  • Services firms reported another drop in confidence and activity in August, and were less able to lift prices than in the previous two months.
  • CBI economists highlighted pressure from higher employer taxes and a larger minimum wage, urging Chancellor Rachel Reeves to avoid further business tax rises.
  • The surveys were conducted July 28–August 14 and covered 56 retailers, 98 wholesalers, and 396 services firms, as the Bank of England stays cautious on rate cuts due to services inflation.