The Confederation of British Industry (CBI) reported on Thursday its latest survey of retailers showed retail sales volume balance stood at -37 in the year to June, up from -50 in May, which marked another steep drop in sales. However, stronger growth for grocers and stable volumes in the specialist food and drink sector ensured a slower pace of decline than in May.

Economist had forecast the reading to increase to -34.

Retail sales volumes are expected to fall at a slightly faster pace in the year to July (-48), mostly reflecting slower growth for grocers and a decline in sales for specialist food and drink retailers.

The report also revealed that orders placed on suppliers continued to decrease in the year to June, albeit at a slower rate than last month, (-42 compared to -56 in May) and are expected to fall at broadly a similar rate in the year to July (-44).

Rain Newton-Smith, CBI Chief Economist, noted: “With high street shops, department stores and shopping centres re-opening across England last week amid some scenes of long queues, you’d be forgiven for thinking retailers’ difficulties are coming to an end. But the health of the retail sector remains in the balance.”