2021.07.2710:30:00UTC+00UK Retail Sales Continue To Rise In July: CBI

UK retail sales continued to expand in July, while orders grew the most since December 2010, the latest Distributive Trades Survey data from the Confederation of British Industry showed on Tuesday.

The retail sales balance came in at 23 percent in July, but slightly down from 25 percent in June. The balance was expected to fall to 21 percent.

Meanwhile, the order book balance advanced to 49 percent, the highest since December 2010, from 30 percent in June.

A net balance of 29 percent of retailers expect sales to increase and a net 39 percent forecast orders to grow in August.

The survey showed that the internet sales were almost flat in July. With growth slowing for the fifth consecutive month, the balance of +2 percent in July was the weakest since the question was first asked in August 2009.

Retailers expect internet sales to pick up next month, but growth was expected to remain well below the long run average.

While demand may be more stable, operational issues worsen, Ben Jones, principal economist at the CBI, said.

"Relative stock levels are at a record low and expected to fall further still, while the number one worry for many firms at the minute is labor shortages throughout the supply chain as staff self-isolate," Jones added.