Retail sales sink in March amid weak consumer confidence, CBI says

UK retail sales had slumped in March amid weak consumer confidence, according to the confederation of British industry latest distributive trades’ survey.

This marked the sixth consecutive month of decline, with retailers expecting sales to fall again in April, but at a slower rate.

The CBI’s retail sales balance fell to -41 in March from -23 in February.

A balance is the weighted difference between the percentage of firms reporting an increase and those reporting a decrease.

Sales for the time of year were deemed to be below seasonal norms in March, to a similar extent to February, with a balance of -36% in March versus -34% the month before.

Martin Sartorius, principal economist at the CBI, said: “Annual retail sales volumes fell markedly in March and are expected to continue declining next month. Firms across the retail and wholesale sectors reported that global trade tensions and the Autumn Budget are weighing on consumer and business confidence, which is leading to reduced demand.

“Tomorrow’s Spring Statement is likely to focus on the persistent challenges facing the UK economy, reinforcing the need for policies that boost businesses’ confidence to invest.

“Reforming business rates, supporting the British Business Bank’s Growth Guarantee Scheme, and properly resourcing the Growth and Skills Levy could support businesses’ investment plans and drive the government’s growth ambitions.”

Retailers and other businesses have complained about a 25 billion-pound ($32 billion) rise in employers’ social security contributions in the Labour government’s first budget last October as well as other cost increases due to come into force next month.