Britain’s retailers are braced for June to be the worst month in more than three years as uncertainty over the outcome of the EU referendum weighs on consumers’ appetites for spending.
Retail businesses are planning to cut jobs and investment as fears about the state of the global economy also add to their woes according to the CBI.
Rain Newton-Smith, the business group’s director of economics, said: “Even though low inflation is still boosting pay packets, retailers are continuing to operate in a tough environment, with strong price competition squeezing margins.
“With a cloud of uncertainty hanging overhead, particularly from challenging global conditions and the outcome of the EU referendum, it is not surprising to see investment intentions deteriorating and business sentiment levelling off.”
Retailers are expecting sales to fall next month at the fastest rate since May 2013 and have sharply cut back on orders.
Of the 121 firms taking part in the CBI survey, 21% said they expected sales volumes to increase next month, while 26% expected them to fall. The resulting balance of -5% was the lowest since May 2013.
via The Guardian