UK retail sentiment deteriorated sharply in November, with the CBI’s quarterly Distributive Trades Survey showing confidence plunging to its worst level in 17 years. Firms expect their business situation to worsen over the coming quarter, with the index sliding to -35% from -10% in August.
Sales volumes also contracted at a faster pace, with the year-to-November balance dropping to -32% from -27% in October. Retailers expect the decline to moderate slightly next month, but the outlook remains bleak, pointing to another weak patch heading into the key holiday period. Even modest stabilization would leave activity at depressed levels by historical standards.
CBI Deputy Chief Economist Alpesh Paleja said retailers are still grappling with “a long spell of weak demand”. He added that uncertainty surrounding the forthcoming Autumn Budget is causing businesses to delay investment and hiring decisions.
