UK retail sales pick up, but supply shortages hit new record-CBI -Breaking
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© Reuters. Shoppers walk Oxford Street in the midst of the pandemic coronavirus (COVID-19), which has been sweeping London. This was October 20, 2021. REUTERS/Toby MelvilleLONDON (Reuters) – British retailers reported a stronger-than-expected sales rise in October after a September slowdown but global supply chain problems reduced their stocks to the lowest level since records began in 1985, the Confederation of British Industry said.
CBI’s monthly distribution trade survey found that retailers saw their headline sales balance rise to +30 in October, compared with +11 in September. It was the lowest level since March 19th when many shops were under COVID-19 lockdown.
Reuters poll results showed that economists most commonly expected a reading above 13.
Although sales were forecast to increase slightly in November, retailers are keeping an eye out for the rise in cases of coronavirus in Britain.
However, in October the survey’s index of stock sufficiency fell to -23. This is the seventh consecutive month that the survey has reached an all-time low. It was expected that the shortages would ease slightly in November.
CBI economist Ben Jones explained that disruption to supply chains combined with shortages of staff and unfavorable public health conditions make it hard for retailers to prepare for winter.
Jones suggested that Rishi, the Finance minister, should support the sector through reforming the tax system at business rates. Jones announced a half-yearly financial plan for Wednesday.
CBI long has argued against the outdated system and punishes companies that invest in energy efficiency.
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