Economic news

Gloom Lifts for UK Shops but only Partially, CBI Survey

Jan 22 (Reuters) - A sharp downturn across British retailers abated somewhat this month, although store chains remain gloomy overall about their prospects, an industry survey showed on Thursday.

The Confederation of British Industry said its monthly balance of retail sales, which compares with volumes a year ago, rose to -17 from -44 in December, marking the highest reading since April 2025.

Its gauge of expectations for the month ahead improved to -30 from -57.

"This improvement is expected to be short‑lived, with sales forecast to fall at a quicker pace next month," said Martin Sartorius, lead economist at the CBI.

"Retailers continue to report that household spending is being weighed down by subdued confidence and cautious behaviour."

Official data have also pointed to a weak trend in retail sales in recent months, which economists expect to continue in figures for December due on Friday.

While British businesses have grown slightly more optimistic in the aftermath of finance minister Rachel Reeves' budget, consumer morale hit a nine-month low in January, according to data company S&P Global.

Reporting by Andy Bruce; editing by Suban Abdulla

Source: Reuters


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