UK retail sales dip in May

The CBI said sales balance decreased to -10 in May from +5 the previous month, falling short of consensus estimates of +10.

“Retailers continue to face a challenging trading environment, with firms reporting disappointing sales and formidable inflationary pressures,” said CBI chief economist Martin Sartorius. As a result, they must reduce the size of their employees and their investment plans.

“The sales-for-the-time-of-year balance, which is a better guide to the official data than the reported sales balance, fell to a 11-month low of -18 in May, from +21 in April. The sluggishness of sales volumes likely reflects a combination of continued rapid increases in goods prices, the desire by households to rebuild their savings buffer, and some households cutting back in response to the jump in their borrowing costs.