CBI Realized Sales

CBI realized sales are an accurate early indicator of monthly retail sales in the U.K. The Confederation of British Industry, or CBI, first introduced first introduced the documentation of the concept of realized sales in 1983. This data is based on responses gathered via the CBI's Distributive Trades Survey, or DTS, which covers 20,000 outlets or firms responsible for a large component of the of retail sector.

The CBI realized sales number is reported as a balance figure. This figure is based on the difference in the percentage of U.K. retailers reporting an increase in retail sales and those reporting a decrease. An increasing positive balance figure indicates strong retail sales and by extension, a robust economy. By contrast, a downward trending figure is viewed as a sign of a declining retail market and a slow economy.

Widely considered by economists and financial experts to be an important and reliable source of economic data as well as an indicator of retailer attitudes, the DTS encompasses a range of questions on topics that cover employment trends, sales, stocks, orders and other indicators of retail activity and trends. The results are grouped into different retail categories, ranging from grocers to recreational goods. 

The DTS asks U.K. retailers specific questions about how their sales and orders for the current month and expectations for the next month compare with a year earlier. Experts rely on these responses to gauge the level of optimism among retailers, to develop a picture of the state of retail activity for that month, and also to forecast retail activity for upcoming fiscal periods.

After each survey period has ended, the CBI releases a report of all the data gathered during that survey. This report also includes commentary about the most important takeaways, and offers insight about what conclusions or predictions can be drawn from that data. The CBI also produces larger, more comprehensive reports on a quarterly basis.

The reports and other materials produced by the CBI, including the DTS reports, aren’t just fodder for interesting reading material. This data can play a role in major developments and policy changes that can have widespread impact on many businesses in the United Kingdom.  

Various government departments in the United Kingdom consider data from the CBI’s DTS reports when contemplating economic policy or making conclusions about economic forecasts. Likewise, the Bank of England also turns to this data when making critical decisions.