British retail sales growth improved unexpectedly in August, survey data from the Confederation of British Industry revealed Wednesday.
The balance of the CBI’s distributive trades survey rose to +24 in August from +21 in the previous month. Economists had expected a balance of +18.
The firm and steady growth in August was largely driven by further strong sales growth in clothing stores. Grocers’ sales also inched up in the year to August, ending its two months of stagnation.
Retailers expect a faster rate of growth in sales volumes in the year to September with the corresponding balance at +35. Their optimism about business situation over the next three months increased in August and an improvement in investment intentions for the year ahead climbed to +17 from -10 in the previous quarter.
“Household spending seems to have remained firm going into the second half of this year, so the outlook for the retail sector looks upbeat,” Rain Newton-Smith, CBI Director of Economics, said.
“However, the renewed fall in average selling prices illustrates the intense challenges facing some retailers – particularly grocers – where strong price competition to capture consumer value is still prevalent.”
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