Weak August sales prediction

Published:  29 July, 2009

London: Sales volumes in the wholesale sector fell again in the year to July. Builders' merchants in particular had another very difficult month according the CBI's latest Distributive Trades Survey.

It shows a balance of 19% reporting falling sales, an improvement on June at when the figure was -36%, but wholesalers predict a -38% fall in August.

The three-month moving average of sales volumes, which smoothes out monthly peaks and troughs, remained negative (a balance of -16%), and is expected to worsen in August (-21%).

Stocks remain adequate in relation to expected demand, but the volume of stocks lay below its long-run average for the third consecutive month.

The volume of orders placed upon suppliers fell again, with a balance of 13% of retailers reporting a drop in July, and a balance of 17% foreseeing a decline in August. 

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