UK retail sales dip slightly in July after jump after CBI lockdown

LONDON, July 27 (Reuters) – UK retailers reported only a slight slowdown in July after sales growth hit its highest level in nearly three years in June, the first full month after the reopening of non-essential stores following a coronavirus shutdown, industry data showed on Tuesday. .

The Confederation of British Industry’s sales volume measure from the previous year fell to +23 from +25 in June, which was the highest since August 2018.

Economists polled by Reuters mostly expected a larger drop to +21.

The CBI said order growth was the fastest since December 2010 and the pace of sales is expected to pick up again in August.

However, sales were reported to be in line with usual levels for the time of year, excluding the effect of the coronavirus lockdown in Britain.

CBI economist Ben Jones said consumer demand is supporting Britain’s economic recovery, although clothing and shoe stores in particular have yet to see demand pick up.

“While demand may be more stable, operational issues are getting worse,” he said.

“Relative inventory levels are at an all time high and are expected to decline further, while the main concern for many companies today is the shortage of labor throughout the supply chain as the staff self-isolates. “

The Bank of England is closely monitoring how much Britons spend on savings the British accumulate during the lockdown, which could prove to be a key factor in the country’s recovery from the COVID-19 pandemic.

It also examines whether supply bottlenecks caused by the pandemic – such as dwindling inventory in the retail sector – will lead to longer-term inflationary pressures.

Reporting by William Schomberg, editing by David Milliken

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