The Confederation of British Industry (CBI) reported on Tuesday its latest survey of retailers showed retail sales volume balance stood at -50 in the year to May, up from -55 in April, which marked the fastest drop since the start of the survey in 1983.

Economist had forecast the reading to increase to -50.

Retail sales volumes are expected to fall at a slightly slower – but still historically fast - pace next month as well.

The report also revealed that orders placed on suppliers fell at a quicker pace than April (-56, down from -48), while stock levels in relation to expected sales rose to their highest since October (+45, up from +36). Retailers also reported prices as being broadly flat in the year to May (+3, compared to +51 in February). This was the lowest balance since August 2016. Expectations for price growth over the year ahead were the weakest since November 2015 (+7, compared to +62).

In other survey results, investment intentions for the distribution sector as a whole dropped at their fastest pace in survey history (-69, down from +8 in February), while employment declined at the steepest pace in ten years in the 12 months to May (-33, down from -23).

Rain Newton-Smith, CBI Chief Economist, noted: “As we gradually reopen the economy, retailers may yet need more support from the government if demand falters. Ensuring safety in the workplace remains the top priority, as more firms look to bring staff back to work. Many challenges remain in managing supply chains and costs in a tough environment.”