London, United Kingdom. British retail sales fell in March by the most since April 2020, according to a survey released this week, as weak economic conditions continued to weigh on household spending.
CBI survey shows steep decline in sales volumes
The Confederation of British Industry said its monthly gauge of retailers’ annual change in sales volumes dropped to -52 in March from -43 in February. Businesses expected only a marginal improvement to -49 in April.
The CBI survey of 50 retail chains was conducted between February 25 and March 13, mostly after the start of the US-Israeli war on Iran.
Economic pressures and inflation concerns
“Retailers report that weak economic conditions continue to weigh on household spending, with subdued activity also evident across the broader distribution sector,” CBI Lead Economist Martin Sartorius said.
The conflict has pushed up petrol prices in Britain, and the Bank of England expects it will increase broader inflation later this year.
The survey did not directly attribute the fall in sales to the conflict. The CBI said the situation increased the need for the government to ease the cost impact on businesses from new employment rights and tax.
“The conflict in the Middle East – which risks fuelling price pressures and squeezing household budgets – underscores the need for the government to take further action to lower the cost of doing business for distribution firms,” Sartorius said.
How do you think higher petrol prices will affect your household spending in the coming months?
