UK Retail Sales Fall for 11th Month: CBI

The Confederation of British Industry's retail sales gauge for the UK increased slightly to -32 in August 2025 from -34 in July, better than market expectations of -33.

The latest reading indicated that retail sales volumes declined for the 11th consecutive month.

Looking ahead, the outlook for September brightened to -16.

Shops raised prices at the fastest pace since late 2023, with the CBI’s price gauge jumping to +65, though a slowdown is expected next month.

The CBI said weak demand and higher labor costs are squeezing margins, hurting confidence and leading firms to cut back on hiring and investment.

Retailers also face pressure from higher employment taxes set by Finance Minister Rachel Reeves and a sharp rise in the minimum wage.