Investing.com - Retail sale volumes in the U.K. were significantly lower in January, dropping to the lowest level since March 2009, industry data showed on Thursday.
In a report, the Confederation of British Industry said the result of its index of U.K. retailers tumbled by 31.0 points to minus 22.0 in January from a reading of 9.0 in December.
Analysts had expected the index to decline by 8.0 point to 1.0.
On the index, a reading above 0.0 indicates higher sales volume, below indicates lower.
U.K. retailers reported sales were disappointing for this time of year and orders were also down, with firms expecting levels to fall again next month.
Retailers expect annual sales volumes to continue to fall in February, albeit at a slower pace than this month.
Commenting on the report, CBI Chief Economic Adviser Ian McCafferty said, “Shoppers have reined-in spending across the board at the start of the New Year after taking advantage of early discounting last month, which boosted pre-Christmas sales.”
He added that, "Family budgets are under continuing pressure with inflation still high and wage increases modest.”
Following the release of the data, the pound held on to gains against the U.S. dollar, with GBP/USD rising 0.28% to trade at 1.5702.
Meanwhile, European stock markets were broadly higher. The FTSE 100 climbed 1.05%, the EURO STOXX 50 rallied 1.15%, France’s CAC 40 rose 0.95%, while Germany's DAX surged 1.35%.
In a report, the Confederation of British Industry said the result of its index of U.K. retailers tumbled by 31.0 points to minus 22.0 in January from a reading of 9.0 in December.
Analysts had expected the index to decline by 8.0 point to 1.0.
On the index, a reading above 0.0 indicates higher sales volume, below indicates lower.
U.K. retailers reported sales were disappointing for this time of year and orders were also down, with firms expecting levels to fall again next month.
Retailers expect annual sales volumes to continue to fall in February, albeit at a slower pace than this month.
Commenting on the report, CBI Chief Economic Adviser Ian McCafferty said, “Shoppers have reined-in spending across the board at the start of the New Year after taking advantage of early discounting last month, which boosted pre-Christmas sales.”
He added that, "Family budgets are under continuing pressure with inflation still high and wage increases modest.”
Following the release of the data, the pound held on to gains against the U.S. dollar, with GBP/USD rising 0.28% to trade at 1.5702.
Meanwhile, European stock markets were broadly higher. The FTSE 100 climbed 1.05%, the EURO STOXX 50 rallied 1.15%, France’s CAC 40 rose 0.95%, while Germany's DAX surged 1.35%.