UK Retail Sales Growth Fastest Since December 2014

(RTTNews) - UK retail sales rose at the fastest rate since late 2014, but the pace is expected to slow slightly next month, survey data from the Confederation of British Industry showed Tuesday. The balance of the CBI's Distributive Trades Survey surged to 60 from 23 in July. Economists had expected it to ease to 20. The balance is expected to ease to 39 in September. Orders grew at a survey record pace in August with the balance jumping to 68 from 49 in July. That was the strongest figure since July 1983. In September, the order balance is expected to ease to 55. "While sales growth is set to remain strong, a more definitive shift in household spending towards consumer services is anticipated later in the year - leading to greater normalization of growth in the retail sector," CBI Lead Economist Alpesh Paleja said. "Furthermore, there are signs of operational challenges still biting, with stock levels reaching another record low and import penetration falling."

The economist said the disruption is being exacerbated by continued labor shortages as many retailers are reliant on younger employees currently awaiting their jab.