The Confederation of British Industry's (CBI) retail sales gauge for the United Kingdom rose to -8 in April 2025, the highest level in six months, up sharply from -41 in March and beating market expectations of -20.
UK CBI retail sales fall the least in six months
The improvement suggests that the pace of decline in retail sales has slowed, providing a modest sign of resilience in the sector. However, optimism was short-lived as the CBI’s outlook for May deteriorated sharply, dropping to -33, the lowest reading in over a year.
Despite the softer contraction in April, firms remain cautious, citing persistent concerns over weak consumer sentiment, the lingering impact of government measures introduced in the Autumn Budget, and broader global economic uncertainty. With no meaningful recovery in sales expected in the near term, retailers are calling on the government to introduce further measures to support business activity and strengthen consumer confidence.
Retail sales unexpectedly rose in March
Official data had earlier shown that retail sales unexpectedly rose in March, offering some short-term relief. However, underlying pressures remain, with households facing higher energy and food bills, while heightened tensions from the ongoing US-China trade war continue to dampen sentiment. The wholesale sector also showed signs of strain, with wholesale sales falling sharply in April. Wholesalers anticipate that the downturn will extend into May, reinforcing concerns that broader demand conditions across the economy remain fragile.
