Retail sales in the UK have seen for their longest period of decline in eight years, according to the latest CBI monthly Distributive Trades Survey.
Sales in July fell for the third consecutive month, albeit to a lesser extent than in June, said the organisation.
The survey of 93 firms, of which 46 were retailers, found that orders placed on suppliers also declined for the third consecutive month.
Both sales and orders are anticipated to be broadly flat next month, according to the CBI.
Grocers were the largest positive contributor to headline sales growth this month, reversing fortunes after a large fall last month however this was more than offset by declines in other categories, particularly department stores, clothing and other normal goods such as jewellery and flowers.
Growth in online sales also recovered after flattening out in the year to June but growth remains below the long-run average, and is expected to edge lower in the year to August.
Meanwhile, wholesalers reported no growth in sales on a year ago, but a small pick-up is expected in the month ahead.
“Whilst last year’s summer strength in retail sales is driving some of the comparative weakness this year, it is still hugely concerning that sales have fallen for the longest period in almost eight years,” commented Rain Newton-Smith, CBI Chief Economist.
“Despite the recent pick-up we’ve seen in households’ real earnings, the sun is clearly not shining on the British high street.
“The UK economy has reached a fork in the road and the new Prime Minister must now do everything in his power to achieve a good Brexit deal, thus protecting jobs and our economy.”
