The Confederation of British Industry’s retail sales balance fell to –32 in November 2025 from –27 in October, undershooting market expectations of –30. This marked the first decline since June’s sharp drop and signaled a deeper contraction in retail activity, extending a period of weakness that has persisted since mid-2023 ahead of the 26 November annual budget. Retailers expect demand to remain muted heading into December, with sales projected to decline again, though at a slightly slower rate. Business sentiment deteriorated sharply, worsening to its lowest level in 17 years, and firms anticipate their operating conditions will continue to weaken over the coming quarter. Capital expenditure is expected to fall, with investment intentions still depressed by historical standards. Employment also declined, and retailers expect headcount to shrink at a marginally faster pace next month. On the price front, retail selling price inflation eased closer to its long-run average.
