Retail sales down as Brexit uncertainty weighs on consumers | Business

British retail sales fell in March at the fastest pace in more than a year, as the growing policy crisis over the UK's Brexit weighed on consumers' willingness to spend, according to a survey by the major retailers.

The latest figures from the Confederation of British Industries, which cover a third of retail jobs, indicate that retail sales have fallen sharply in March since October 2017.

The monthly business lobby group's retail sales index plunged from 0% in February to -18% in March, meaning more retailers reported a drop in sales than an increase. Economists in the city were expecting a reading of + 5%.

Anna Leach, Head of Economic Intelligence at the CBI, said: "While real wage growth is accelerating, consumer confidence is being affected by growing uncertainty about Brexit and worries about the future of the economy.

"The current pain in the street is another reason why it is so important for politicians to agree that Parliament should adopt an agreement that is acceptable to the EU and protects our economy. No agreement should be avoided at all costs. "

The weaker picture in the survey of 105 companies, including 50 retailers, may partly reflect the fact that year-over-year sales growth has been skewed by the late Easter schedule this year. The CBI warned that sales volume was above average for the time of year and that it should remain above normal in April.

Another factor is that, unlike last year, this year's survey did not provide a better boost to sales that could come from Mother's Day, which falls on March 31st.

However, economists said the investigation still indicated that a difficult period for the main street has continued this month, with Westminster remaining stuck on the Brexit. The balance of the CBI survey has not been positive for four months, indicating that retail sales have remained weak.

Although survey data paint a bleak picture of consumer spending in the last few months leading up to Brexit, the official figures from the Office for National Statistics indicate stronger than expected performance.

Consumers seemed to have overcome their growing Brexit fears by increasing spending in February as the unusual heat of the season drove consumers to the shopping street.

Record levels of employment and the highest annual wage growth in a decade have helped rebuild the spending power of households, although economists fear a Brexit without an agreement could undermine demand.