Connect with us

Hi, what are you looking for?

Editor’s Pick

Rising sales fail to boost retailers’ confidence for the future

Retailers saw an unexpected pick-up in sales last month, but the mood among companies was still its bleakest since the start of the pandemic, a survey has suggested.

Higher prices pushed up the total value of sales compared with August 2021, while volumes were flat, according to a monthly survey by the CBI.

The net balance on its sentiment index rose to 37 per cent in August, from -4 per cent in July. The results are the difference between the percentage of retailers reporting a rise and those reporting a decrease in sales, compared with the same month a year ago.

However, confidence among companies about their business outlook for the next three months hit -22 per cent, down from -13 per cent in May and the lowest level since the first lockdown in May 2020.

Prices for customers continued to rise, with the month-on-month growth in the number of firms reporting price rises reaching its fastest pace since 1985. About 88 per cent of retailers said the average price at which they sold their goods had risen in the year to August and only 1 per cent said that prices had fallen, giving a net balance of 87 per cent. The figure in July’s survey was 77 per cent.

Inflation stands at 10.1 per cent and is expected to peak in October at 13.3 per cent, the highest level since 1980.

Data published by the Office for National Statistics last week showed that online spending rose last month, offsetting declines in the sale of clothing, fuel and household goods. Retail sales volumes rose by 0.3 per cent between June and July: better than the 0.2 per cent contraction forecast by economists and reversing a 0.1 per cent dip between May and June.

Retail sales figures have become a key indicator for the health of the economy as rising inflation eats into people’s incomes and savings, while many businesses are being forced to pass on higher costs to customers.

Online sales volumes rose by 4.8 per cent in July, reversing a 3.7 per cent slide in June.

The CBI figures suggest that online sales fell in August compared with the same month in 2021. The net balance for internet shopping was at -7 per cent, up from -37 per cent in July. Online sales are expected to stagnate next month. Retailers plan to cut back on investment in the next year amid concern that Britain is heading for a recession caused by the cost of living crisis.

Martin Sartorius, principal economist at the CBI, said: “Firms need support from government to encourage investment and create sustainable growth. Business rates reform and a more flexible apprenticeship levy will help with dwindling business.”

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.