UK Retail Sentiment Logs Biggest Fall In 17 Years: CBI

(RTTNews) - Sentiment among UK retailers declined at the sharpest pace in 17 years in November, the latest quarterly Distributive Trades survey from the Confederation of British Industry showed Tuesday.

The retail sales balance fell to -32 percent in November from -27 percent in October. A net 24 percent expect sales to decline next month.

Nearly 25 percent of retailers judged sales to be "poor" compared to -15 percent in October. A balance of 18 percent said December sales will disappoint seasonal norms. The survey showed that sentiment among retailers worsened in November to the greatest extent in 17 years, with firms expecting their business situation to deteriorate over the coming quarter came in at -35 percent compared to -10 percent in August.

Retail employment decreased again in November. The corresponding balance slid to -19 percent from -14 percent in August.

Retail selling price inflation dropped closer to its long-run average in the year to November. The index dropped to 46 percent from 65 percent in August.

"Retailers continue to grapple with a long spell of weak demand, as households remain cautious around day-to-day spending," CBI Deputy Chief Economist Alpesh Paleja said.

"With all eyes on the forthcoming Budget, uncertainty in the run-up has meant that businesses are holding back on plans for investment and hiring," Paleja added.