UK February Retail Sales Growth Weakest In More Than A Year

(RTTNews) - British retail sales growth eased sharply in February to its weakest level since late 2013, after six months of robust performance, survey data from the Confederation of British Industry revealed Monday.

The balance of the CBI's distributive trades survey dropped to +1 from +39 in January. Economists were looking for a figure of +35.

The latest balance was the lowest since November 2013, when it was +1, the business lobby said. The survey was carried out among 138 firms between January 29 and February 13.

Sales declined at grocers, non-specialised stores and clothing retailers, while they improved at chemists and shops selling cultural goods.

"After a strong start to the year, retailers were disappointed by the unexpected halt in sales growth. In particular, continually heavy discounting in the grocers sector seems to be weighing on activity," CBI Director of Economics Rain Newton-Smith said.

The volume of orders placed on suppliers also declined in February, with the corresponding balance falling to -7 percent.

However, retailers expects sales volumes to grow next months. The resulting balance was +27 versus +42 in February.

"Looking ahead, the outlook for the retail sector is fairly positive, with the boost to household incomes from falling inflation likely to support spending. Indeed, firms remain upbeat about the businesses situation over the coming quarter," Newton-Smith said.

However, overall trading conditions on the high street remain challenging, the economist added.