Confederation of British Industry (CBI) latest retail sales research for July were ahead of expectations and showed a slight slowdown from June.
This was the fastest rise since 2018, but stock levels slumped to a record low new data reveals.
Retail sales volumes for July saw a 23% rise compared to a 25% improvement in June. The latest figures show “consumer demand continues to support the UK’s economic recover,” said Ben Smith, principal economist at the CBI.
Orders are likely to slowdown, but sales are expected to pick up a fast pace next month the CBI says.
Smith said, “Retail sales have been at or above seasonal norms for the last four months now, although this picture is not universal, with the clothing and footwear stores in particular yet to see demand recover to usual levels.
“While demand may be more stable, operational issues worsen.
“Relative stock levels are at a record low and expected to fall further still, while the number one worry for many firms at the minute is labour shortages throughout the supply chain as staff self-isolate.”