Riots add to high street gloom
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The gloom on the high street deepened today as a survey showed optimism at a two-year low after a dismal August blighted by the English riots.
A balance of 11% of retailers said they felt more negative about the business situation over the next three months, its worst reading since February 2009, according to business body the CBI.
And the balance of retailers reporting declining sales in August was at its worst level since May 2010, with clothing, household goods and DIY products bearing the brunt.
The CBI said the gloomy figures were caused by the squeeze in consumer spending but economists said the outbreak of rioting and looting also kept shoppers away from the high street.
The survey was carried out in the two weeks to August 16, the period around the riots, which kicked off on Saturday August 6.
Samuel Tombs, of Capital Economics, said: "It looks as if the recent falls in equity prices and the riots which both occurred at the start of the month may have taken their toll on consumer confidence and spending.
"Whichever way you look at it, then, it's clear that fiscal austerity, rising inflation and increasing unemployment are combining to put an end to any recovery on the high street."
The survey also revealed the balance of retailers scaling back their investment plans over the next year hit its highest level since February 2009.
Meanwhile, inflationary pressures eased slightly, with a balance of 55% of retailers saying they had increased selling prices, its lowest reading since November 2010.
Consumers have reined in spending in recent months as wages fail to keep up with rising prices, creating a bloodbath on the high street.
Specialist retailer Floors 2 Go became the latest victim of the squeeze after it fell into administration, leading to around 200 job losses.
Judith McKenna, chairwoman of the CBI distributive trades panel and Asda's chief operating officer, said: "As expected, August was a tough month on the high street.
"Sales volumes fell at a pace not seen in over a year, as consumers have continued to see their real incomes squeezed by a combination of inflation and weak wage growth."
She added that the survey suggests that prices will rise more slowly in the coming months as retailers keep prices low to fight for trade.
But she said rising energy and commodity costs meant "families' spending power looks like being constrained for some time".
PA
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments