The Confederation of British Industry (CBI) has tipped British retail sales to register a slight increase over the Christmas period, with the decline of recent months having levelled off.
According to the trade body’s latest distributive trades survey, Britain’s reported sales balance was up at -11 this month from -15 in September, beating analysts’ expectations. Although reported sales for the time of year were down at -34 – the lowest reading since May 2009 – the expected sales balance for November climbed to +4.
“High street sales remain difficult but the decline has stabilised, and retailers expect there to be some very modest growth next month in the build-up to Christmas,” said CBI chief economic adviser Ian McCafferty. “High street retailers are heavily discounting as they aim to provide the best possible value on basics.”
Sales of groceries, furniture and carpets all moved into positive territory in October, as did recreational goods and non-store sales. However, clothing and general department store sales suffered a sharp decline.
Office for National Statistics data published earlier in the week revealed that last month’s retail sales were up by 0.6 per cent on the same point in September 2010.
