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UK Retail Sales Recover but Firms Remain PessimisticThe CBI distributive trades survey’s retail sales balance in the UK rose to 37 in August of 2022 from -4 in July, the highest since November last year and easily beating market expectations of -7. Retailers reported solid growth in sales in the year to August and are expecting another firm rise next month (+31). However, sentiment amongst retailers remained gloomy, with firms feeling pessimistic about the business situation over the next three months to the greatest extent since the early phase of the Covid-19 pandemic in May 2020. “While retail sales returned to solid growth in the year to August, firms remain pessimistic about their business situation over the next three months – to the greatest extent since the first Covid-19 lockdown in 2020. This gloom is reflected in retailers’ investment intentions, which continue to be resolutely negative.”, Martin Sartorius, Principal Economist at the CBI, said.