UK retail sales beat expectations despite Brexit effect - CBI Survey

Latest Confederation of British Industry (CBI) quarterly Distributive Trades Survey shows that UK retail sales volumes grew in the year to August following last month's fall. The survey beat expectations for a further fall this month. However, sales volumes look set to be broadly flat over the next month. CBI's Distributive Trades Survey includes measures of sales activity across the distributive trades and is a leading indicator of consumer spending.

Anna Leach, CBI head of economic analysis and surveys, said: "The summer weather has brought shoppers out onto the high street with retailers reporting that sales growth has risen, outdoing expectations, although firms do expect sales growth to ease next month."

Details of the report showed that volume of orders placed upon suppliers fell for a fifth consecutive month although retailers expect them to grow somewhat in the year to September. Growth in internet sales volumes picked up over the same period, outstripping expectations, with broadly similar growth expected next month.

Investment intentions for the year ahead turned positive this quarter after remaining in the negative since 2013. Year-on-year employment was again flat in the year to August, although retailers expect a small cut in headcount in September. Retailers anticipate a further small improvement in their business situation. However, sentiment is improving at a slower rate than over the past year.