British retail sales slide to 25-year low
An index of UK retail sales dropped in July to the lowest level in a quarter-century as record oil costs forced shoppers to curb spending, the Confederation of British Industry (CBI) said.
The survey of 82 retailers showed 25% sold more goods than a year earlier and 61% sold fewer, the nation’s biggest business lobby said yesterday. The net rounded balance of minus 36 percentage points is the lowest since the survey began in July 1983 and compares with minus 9 in June. Retail sales dropped the most since 1986 last month as record fuel prices, falling house prices and job losses prompted Britons to pare spending.
The Bank of England predicts that economic growth will be the weakest since the early 1990s and that inflation will accelerate to double its 2% target. “It is turning out to be a very grim summer for many retailers,” said Andy Clarke, retail director at Wal-Mart Inc’s Asda chain and chairman the panel overseeing the survey. “Pressure from higher fuel and food prices is prompting many people to rein in their spending.”
The index for durable household goods such as refrigerators, furniture and booksellers slumped to minus 100. Grocers and footwear stores were the only outlets to report a positive sales balance, the CBI said. (China Daily News)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.