The CBI Distributive Trades Survey’s retail sales volumes index bounced back from -41% in March to -8% in April, beating expectations of a weaker recover to -20%.

• However, the index is expected to fall back to -33% in May, indicating a still sluggish retail environment.
• Sales for the time of year were judged to be “poor” in April at -31%, but to a slightly lesser extent than in March (-36%). Retailers expect May’s sales to be even weaker with a reading of -38%.
• While retail sales volumes recovered, wholesale sales volumes weakened further to start the second quarter, with a reading of -33% in April, down form -29% in March.
• Total sales (retail, wholesale, and auto) remained in a solid contraction at -26% in April, up from -32% in March, with the index expected to fall to -29% in May.
• Retail inventories are still solidly above demand with that index at 21% in April, mostly unchanged from 20% in March.