Retail sales and orders tumble as consumer sentiment weakens - CBI

24th Sep 2026 14:53

(Sharecast News) - Retail sales fell sharply in September, an industry-wide survey showed on Thursday, prompting the biggest reduction in orders on record.

According to the latest distributive trades survey from the Confederation of British Industry, the retail volumes balance fell to -55 from August's -48, while retail orders placed with suppliers plunged to -62 from -29, the fastest pace of decline since the survey began in 1983.

Online retail sales were also sharply lower, tumbling to -68 from -43, the quickest rate of decline since October 2023.

Looking ahead, and sales were expected to continue to decline next month, albeit at a slower pace, with a balance of -37. Retail sales for the time of year were judged to be poor - with a balance of -40 - and were expected to remain well below typical levels in October, with the balance largely unchanged at -39.

UK consumers are facing a number of headwinds, after war in the Middle East reignited inflationary pressures and ramped up energy bills. New chancellor John Healey will deliver his first Budget at the end of October, but will need to balance soaring government debt and spending with sluggish economic growth and mounting consumer costs.

Martin Sartorius, lead economist at the CBI, said a number of respondents had attributed the weak retail climate to poor consumer sentiment.

He continued: "The persistent sales downturn appears to have prompted retailer to cut back on order volumes at a survey-record pace. This weakness was echoed across the distribution sector, with wholesalers and motor traders also seeing faster falls in sales.

"With the Budget fast approaching, the government should cut employer National Insurance contributions and deliver meaningful business rates reform to lower the cost of doing business and enable retailers and other distribution firms to invest, hire and grow."

A balance is the weighted difference between the percentage of firms reporting an increase and those seeing a decrease. A total of 127 firms responded to the survey, which was in field between 27 August and 14 September. Of those, 46 were retailers and 71 wholesalers.