UK retail sales volumes fell for the tenth consecutive month in July, with the CBI Distributive Trades Survey showing a net balance of -34%, easing from -46% in June, though sales remain weak amid economic uncertainty and high labor costs.

• Retailers expect sales to continue declining in August (-31%), while seasonal sales assessments worsened again (-36% expected vs -10% in July).
• Retail orders from suppliers fell -21% YoY in July (vs -51% in June) and are expected to contract -16% in August.
• Online sales rose +4% YoY in July, the third straight month of modest growth, with the same pace expected in August.
• Motor trade sales plunged -77% YoY in July (vs -37% in June), the worst reading since June 2020; another sharp drop (-57%) is expected next month.
• Total distribution sales (retail, wholesale, motor trades) fell -39% YoY in July and are projected to decline -34% YoY in August.
• Retail stock volumes in relation to expected demand dipped below the long-run average in July (+12% from +26% in June; long-run average +17%) and are set to remain at a broadly similar position next month (+10%).