Retail recession spreads, UK sees downtrend

Retail sales volumes are down around 5% for the year to June, according to survey data from the latest Confederation of British Industry (CBI) Survey of distribution professions released Thursday (June 23) – and it looks like more bad news is coming for July.

June marks the third month in a row in which volumes have stagnated, the CBI said in a Press release, and retailers expect results in a month to show flat sales volumes through July. For the month, sales were down 19% after being flat in May, and are expected to be well below normal in July, with a projection of a 25% drop in sales volume from typical levels for survey results.

Retailers had “too high” inventory levels in June at 12%, up slightly from 11% in May but below the long-term average of 17%, the statement said. There is no end in sight to excess inventory levels, with projections for July in the 12% range.

Retailers’ year-over-year orders with their suppliers fell 8% in June, compared to a 2% increase last year, the statement said. This is the fourth consecutive month of flat or declining order levels, and July is expected to make it five consecutive months with projections for a 10% decline. Wholesale trade growth fell from 30% last June to 4% in June.

“Retail volumes are struggling as high inflation eats away at consumer budgets,” Ben Jones, CBI’s chief economist, said in the statement. “The squeeze in household incomes appears to have offset any increase in activity due to the extension of the Platinum Jubilee holiday to the start of the month.

“There are also clearer signs that a slowdown in consumer spending is starting to ripple through the broader retail sector, with wholesalers seeing a 14-month period of robust sales growth come to a screeching halt this month. -ci,” he added in the statement.

Jones called on the government to help save Britain’s economy.

“Creating a permanent investment incentive and tackling skills shortages by introducing immediate flexibility in the apprenticeship tax would be solid first steps in building confidence,” he said in the communicated.

In the United States, meanwhile, there is a strong likelihood that the “unacceptably high” prices of recent months will not recede in 2022, according to Treasury Secretary Janet Yellen.

Read more: Yellen expects inflation until 2022 and an economic slowdown



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