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UK retailers reported an above-average sales growth in the year to August but the outlook was less positive with declines in employment, investment intention and business optimism, a closely watched survey showed Thursday.
A net balance of 29 percent said their sales volumes increased in August, according to the latest quarterly Distributive Trades Survey from the Confederation of British Industry. However, the balance for the next month fell to 22 percent.
Further, a net -8 percent of retailers expected their overall business situation to deteriorate slightly over the next three months.
"The summer heatwave has kept shoppers out on the high street, with consumers splurging on food and drink for barbecues and garden parties," Anna Leach, CBI head of economic intelligence, said.
"The long-term challenges facing the retail sector are significant and won't be resolved overnight. Subdued real wage growth and digital disruption continue to pile pressure on firms, while high street retailers continue to suffer under an out-dated business rates system," Leach added.
