The retail sales index in the UK saw an increase to +5 in April, which is the highest level recorded since early 2023, as per the Confederation of British Industry (CBI) survey. This marks a significant improvement from the previous month’s score of +1.
Despite this positive development, the CBI survey indicates that the retail sales index is expected to fall below zero in May, which suggests that consumers will reduce their spending next month. The decline in the index score is expected to be a result of several factors such as inflationary pressures.
The CBI survey also revealed that retailers’ orders with suppliers have remained stable and are expected to remain the same in the coming months. However, the report cautioned that supply chain challenges and rising costs are likely to continue affecting the retail sector in the near future.
The rise in the retail sales index in April is a welcome development for the UK’s retail industry, which has been struggling due to the pandemic-induced lockdowns and restrictions. However, the impending decline in May underscores the challenges that the sector continues to face. The industry will need to navigate these challenges while continuing to adapt to the changing consumer behavior and preferences to ensure a sustainable recovery.