# UK retail sales fall in May after April rise, outlook less gloomy: CBI
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Retail Sales Fall in May, Outlook Less Gloomy: CBI Report
Meta Description: Despite a dip in retail sales this month, stores anticipate stabilised volumes in June due to rising consumer confidence and lower energy prices.
URL: https://financedigest.com/uk-retail-sales-fall-in-may-after-april-rise-outlook-less-gloomy-cbihtml

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# UK retail sales fall in May after April rise, outlook less gloomy: CBI

LONDON (Reuters) – British retail sales declined this month after a modest rise in April but stores expect sales volumes to stabilise in June as consumer confidence improves and energy prices fall, a survey showed on Thursday.

The Confederation of British Industry’s (CBI) monthly distributive trades index fell to -10 in May from +5 in the previous month.

A measure of expected sales in the month ahead rose to zero from -7.

Martin Sartorius, principal economist at the CBI, said [retailers had some reason to be optimistic about the outlook](https://www.financedigest.com/ocado-retail-cuts-outlook-as-britons-tighten-belts.html "Ocado Retail cuts outlook as Britons tighten belts").

Consumer sentiment has been improving and households’ [energy bills](https://www.financedigest.com/generation-y-relying-on-friends-and-family-to-pay-their-energy-bills.html "Generation Y relying on friends and family to pay their energy bills") are set to decline from July,” Sartorius said.

The resulting [boost to incomes should help support retail sales](https://www.financedigest.com/jewellery-maker-pandora-bets-on-gen-z-to-boost-sales.html "Jewellery maker Pandora bets on ‘Gen Z’ to boost sales") going into in the second half of this year.

Retailers also [reported acute price](https://www.financedigest.com/tesco-reported-to-competition-watchdog-by-consumer-group-over-pricing-concerns.html "Tesco reported to competition watchdog by consumer group over pricing concerns") pressures, with price growth in the 12 months to May remaining near multi-decade highs. Shops expect [prices to rise](https://www.financedigest.com/doncaster-delights-investors-with-cultural-appeal-and-solid-property-price-rises.html "Doncaster delights investors with cultural appeal and solid property price rises") at the same pace next month.

Britain’s high inflation rate fell by less than expected to 8.7% in April, down from 10.1% in March, and a 41-year peak of 11.1% in October [last year](https://www.financedigest.com/most-uk-smes-spent-600-hours-over-the-last-year-preparing-for-new-gdpr-legislation.html "Most UK SMEs spent 600 hours over the last year preparing for new GDPR legislation").

However, consumer price [inflation](https://www.financedigest.com/bank-of-englands-bailey-sweats-over-risk-of-sticky-summer-for-inflation.html "Bank of England’s Bailey sweats over risk of ‘sticky’ summer for inflation") remains above the Bank of England’s 2% target and analysts now expect the central bank, which has raised interest rates 12 times in a row since December 2021, to increase Bank Rate further.

The CBI said retail employment fell for the [third quarter](https://www.financedigest.com/workday-announces-fiscal-2018-third-quarter-financial-results.html "Workday announces fiscal 2018 third quarter financial results") running, down to -48 in the year to May, the biggest drop since February 2009.

(Reporting by Suban Abdulla, editing by Andy Bruce)


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