UK leather sales fall
Poor summer weather has hampered already struggling high sales, according to the Confederation of British Industry (CBI). August sales fell sharply for the second consecutive month and the decline is expected to continue into September.
The latest CBI Distributive Trades Survey showed that 60% of respondents said sales in the first half of August were lower than in the prior-year period, with just 13% reporting a rise. The three-month moving average of sales volumes, which levels out monthly volatility, continued to decline, and the balance of -30% was a survey low.
Retail sales were weak across all sectors excluding grocers. Sales sectors related to the housing market, for example household goods, furniture and carpets showed significant decline, while leather and footwear retailers experienced a drop in sales for the first time this year.
CBI chief economic adviser, Ian McCafferty, commented: "Retail conditions have been extremely tough this summer, and the wet August has been a further blow. Sadly, no let up is expected as we head into early autumn. The business outlook is particularly weak and retailers are having to scale back their employment and investment plans in an attempt to ride out the storm."
