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You can find the current article at its original source at https://www.theguardian.com/business/2016/sep/27/high-street-sales-appear-to-be-losing-their-post-brexit-vote-shine
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| High street sales appear to be losing their post-Brexit-vote shine | |
| (about 1 hour later) | |
| The strength of Britain’s high street sales appears to be waning after shops reported a weaker than expected September. | The strength of Britain’s high street sales appears to be waning after shops reported a weaker than expected September. |
| The CBI’s health check of retailers and wholesale businesses found that the balance of firms reporting a fall in sales over the last year dropped to -8 from a high of +9 in August. | The CBI’s health check of retailers and wholesale businesses found that the balance of firms reporting a fall in sales over the last year dropped to -8 from a high of +9 in August. |
| Good weather in much of the country failed to prevent a decline in sales of groceries, food and drink and leather. Steady sales of clothing and footwear and DIY goods kept the tills ringing enough for a balance of +7% of retailers to say that their sales volumes in September were good for the time of year. | |
| Howard Archer, chief UK economist at IHS Global Insight, said: “The softer CBI distributive trades survey for September could be a sign that consumers are becoming more careful in their spending amid a more uncertain economic outlook following June’s Brexit vote. | Howard Archer, chief UK economist at IHS Global Insight, said: “The softer CBI distributive trades survey for September could be a sign that consumers are becoming more careful in their spending amid a more uncertain economic outlook following June’s Brexit vote. |
| “However, it is premature to come to any firm conclusions. The CBI survey may simply indicate that consumers took a breather in September after spending at a robust clip over the summer and through the second quarter,” he said. | “However, it is premature to come to any firm conclusions. The CBI survey may simply indicate that consumers took a breather in September after spending at a robust clip over the summer and through the second quarter,” he said. |
| The latest data from the Office for National Statistics show that retail sales volumes were up 6.2% in August on the year before after a huge post-Brexit vote bounce in July, when sales volumes increased by 1.9% on June. | The latest data from the Office for National Statistics show that retail sales volumes were up 6.2% in August on the year before after a huge post-Brexit vote bounce in July, when sales volumes increased by 1.9% on June. |
| Archer said there was little sign of a sudden drop in sales, despite the uncertainty surrounding the outcome of Brexit negotiations. | Archer said there was little sign of a sudden drop in sales, despite the uncertainty surrounding the outcome of Brexit negotiations. |
| “The fundamentals are currently still pretty healthy for consumers with employment at a record high and purchasing power benefiting from earnings growth running well above consumer price inflation. | “The fundamentals are currently still pretty healthy for consumers with employment at a record high and purchasing power benefiting from earnings growth running well above consumer price inflation. |
| “Specifically, employment was up 174,000 in the three months to July while earnings growth of 2.3% in the three months to July (the usual benchmark used) was 1.7 percentage points above consumer price inflation of 0.6% in both July and August.” | “Specifically, employment was up 174,000 in the three months to July while earnings growth of 2.3% in the three months to July (the usual benchmark used) was 1.7 percentage points above consumer price inflation of 0.6% in both July and August.” |
| Ruth Gregory, UK economist at Capital Economics, said the situation for shoppers may worsen over the next six months as inflation increases and wage rises stagnate or fall back towards 1%, squeezing real disposable incomes. But low interest rates and the likelihood that the government will relax its austerity measures will act as a counterbalance. | Ruth Gregory, UK economist at Capital Economics, said the situation for shoppers may worsen over the next six months as inflation increases and wage rises stagnate or fall back towards 1%, squeezing real disposable incomes. But low interest rates and the likelihood that the government will relax its austerity measures will act as a counterbalance. |