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GB: CBI Distributive Trades
| Actual | Previous | |
| Sales Balance | -48% | -26% |
Highlights
UK retail activity weakened sharply in August 2026, suggesting that summer trading failed to revive demand. The retail sales balance deteriorated from minus 26 percent in July to minus 48 percent, while sentiment fell to minus 29 percent, indicating increasingly widespread pessimism. These figures represent survey balances, rather than percentage changes in actual sales.
Weakness extended across online retail, wholesale and motor trades, suggesting broad demand pressures. Although September’s retail sales balance is expected to improve to minus 22 percent, sales are still forecast to fall below seasonal norms. This implies a slower contraction rather than recovery.
Retailers also face an uncomfortable combination of falling sales and strengthening price pressures. The expected selling-price balance of 53 percent could further constrain purchasing power if realised. Meanwhile, planned reductions in supplier orders suggest cautious stock management and limited confidence in near-term demand.
Investment intentions improved substantially, with the balance rising from minus 52 percent to minus 16 percent, but remained negative. Slower employment declines similarly indicate easing retrenchment rather than renewed expansion. The central challenge is therefore to restore demand and business confidence while addressing pressures on investment and hiring.