The CBI Distributive Trades Survey showed retail sentiment fell at the sharpest rate in five years in May, with the retail sales volumes index dropping to -27% (from -8% in April) and expected to worsen further to -37% in June.

• Sentiment amongst retailers plummeted in May at the sharpest rate in five years, with a net balance of firms expecting their business situation to worsen over the coming quarter (-29% in May, down from -19% in February).
• Retail employment declined with the index at -15% in May and is expected to fall faster in June (-20%), while investment plans remained deeply negative at -47% for the next 12 months.
• Total distribution sales volumes (retail, wholesale, motor trades) fell to -43% in May, matching the fastest decline since January 2021, with a slower fall expected in June (-38%).
• Online retail sales rebounded strongly to +37% in May (from -1%) after six months of stagnation, though growth is expected to slow in June (+17%).
• Retail selling price inflation picked up to +35% (from +25%), still below the long-run average of +41%, but is expected to accelerate to +57% in June.
• Motor trades saw the steepest drop among segments, falling to -65% in May, a rate expected to continue in June.