Job cuts and reduced investment over the following months are looming for UK retailers, as the CBI found retail activity dropped for a fourth consecutive month.
The organisation’s barometer of retail activity plunged to its lowest point since March 2021, as elevated interest rates continued to affect household finances.
The CBI revealed trading conditions continue to look bleak for the upcoming months, leading to retailers reducing orders with suppliers.
CBI principal economist Martin Sartorius said: “Against a backdrop of rising interest rates and weak demand, retailers foresee cuts to investment over the next year, while employment is expected to fall again next month”.
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While the fall in retail spending is largely considered to be a result of the Bank of England’s 14 interest rate rises since December 2021, poor weather conditions over the summer also affected sectors like footwear and clothing.
Earlier this week, market researcher NIQ revealed sales at UK supermarkets had plunged to their lowest level since January.
The company attributed the drop to lower inflation and unseasonable weather over the summer.
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