UK Shoppers Tighten Belts as Budget Jitters Loom

A Persistent Downturn

UK stores are feeling the pinch as shoppers hold back on spending. This trend has been ongoing for over a year, and the latest figures show sales are still dropping. Consumers are anxious about what the finance minister might announce in the upcoming budget.

CBI Reports Negative Sales Figures

The Confederation of British Industry (CBI) tracks these trends. Their latest report reveals that sales are still down compared to last year, with a figure of -27, a slight improvement from last month's -29. However, this remains unfavorable news.

Deteriorating Outlook

Looking ahead, the situation does not appear to be improving. The expectation for next month is even worse, with a projected drop to -39 from -36. This indicates that consumers are currently reluctant to spend money.

Economic Uncertainty Weighs on Businesses

Martin Sartorius, an economist at the CBI, notes that this is the 13th consecutive month of declining sales. He attributes this to the uncertainty surrounding the upcoming budget on November 26th. This apprehension is exacerbating challenges for retailers and other businesses.

Last Year's Budget Impact

Last year's budget already took a toll on businesses, particularly due to higher social security contributions. Now, discussions about new employment laws that could complicate hiring are adding to the uncertainty and nervousness among business owners.

Survey Details

The CBI survey included responses from 192 businesses, with 81 retailers and 86 wholesalers. This provides a comprehensive overview of the current state of the industry.