A growing share of firms expect their business situation to deteriorate

Confidence amongst retailers has dropped at its fastest rate in 17 years as firms become increasingly pessimistic about their fortunes amid high taxes and low spending.

Retailers expect demand to remain subdued heading into December, with sales set to fall again – albeit at a somewhat slower pace, according to the CBI’s latest quarterly Distributive Trades Survey .

With demand still weak and uncertainty mounting ahead of the Budget, retailers plan to pull back on both investment and hiring, the CBI found.

“Retailers continue to grapple with a long spell of weak demand, as households remain cautious around day-to-day spending,” Alpesh Paleja, deputy chief economist of the CBI, said.

“With all eyes on the forthc

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