LONDON, Oct 27 (Reuters) - British retailers reported another drop in sales in October and they expect a further fall in November as consumers worry about finance minister Rachel Reeves' budget in a month's time, a survey showed on Monday.
The Confederation of British Industry said its gauge of how retail sales compared with a year earlier improved only marginally but remained negative at -27 this month from -29 in September.
The CBI's gauge of expected sales for the month ahead slipped to -39 from -36.
Martin Sartorius, CBI principal economist, said the 13th consecutive month of falling sales volumes reflected poor consumer confidence which had been compounded by caution ahead of the budget on November 26.
"Persistent uncertainty ahead of the autumn budget is deepening the strain on retailers and other distribution firms that are still grappling with the effects of last year's fiscal decisions," Sartorius said.
"To help rebuild confidence and encourage growth, the chancellor should reaffirm her commitment to no further business tax hikes in November."
Retailers - who like other employers were hit by a hike in social security contributions in Reeves' first budget last year - were also nervous about planned employment rights legislation which could deter hiring, Sartorius said.
Separate official data published on Friday showed a surprise increase in sales volumes in September, helped by tech sales - including Apple's new iPhone models - and demand for gold from online jewellers.
The CBI's survey was conducted between September 26 and October 14. Of the 192 respondents, 81 were retailers and 86 were wholesalers.
Writing by William Schomberg, Editing by Paul Sandle
Source: Reuters