UK retail sales slump in March; Lower Thames Crossing approval welcomed, and criticised – business live

UK retail sales have dropped again this month, as weak consumer confidence hits spending in the shops, a new poll has found.

The CBI’s latest ‘distributive trades’ survey shows the UK economy remains in a weak state, a day before Rachel Reeves’s spring statement.

The survey found that British retailers have reported the sharpest drop in sales volumes in eight months. Retail sales volumes dropped year-on-year in the year to March, the sixth month of decline in a row.

This chimes with a survey from KPMG this morning, showing that consumers are cutting back spending on everyday items.

Martin Sartorius, principal economist at the CBI, says:

“Annual retail sales volumes fell markedly in March and are expected to continue declining next month. Firms across the retail and wholesale sectors reported that global trade tensions and the Autumn Budget are weighing on consumer and business confidence, which is leading to reduced demand.

“Tomorrow’s Spring Statement is likely to focus on the persistent challenges facing the UK economy, reinforcing the need for policies that boost businesses’ confidence to invest.

“Reforming business rates, supporting the British Business Bank’s Growth Guarantee Scheme, and properly resourcing the Growth and Skills Levy could support businesses’ investment plans and drive the government’s growth ambitions.”

The survey measures the proportion of retailers who reported an increase, or a decrease, in sales.

Retailers reported that sales volumes fell at an accelerated rate in the year to March, and are expected to fall at a slower pace next month.

Sales for the time of year were judged to be below seasonal norms in March, as they were in February. Sales are expected to disappoint again in April.