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Reuters Published
March 25, 2025
According to an industry survey released on Tuesday, British retailers reported the steepest decline in sales volumes in eight months in March, with slight improvement expected next month. The data reflects growing consumer caution.
The Confederation of British Industry's monthly retail sales index fell to -41 in the 12 months leading to March, down from -23 in February, marking the lowest reading since July last year.
The survey's measure of expected sales for the upcoming month remained steady at -30. "Firms across the retail and wholesale sectors reported that global trade tensions and the autumn budget are weighing on consumer and business confidence, leading to reduced demand," said Martin Sartorius, principal economist at the CBI.
"The combination of a faster fall in retail sales volumes and significant declines in wholesale and motor trades resulted in the total distribution sector seeing its sharpest annual sales drop in a year."
Retailers and other businesses have voiced concerns over a £25 billion ($32 billion) increase in employers' social security contributions, introduced in the Labour government's first budget last October, along with additional cost hikes set to take effect next month.