British retail sales rose at their fastest pace in two years in November and retailers expect a further rise next month, according to a survey on Thursday that will boost hopes of a strong Christmas shopping period.
However, prospects for next year are less certain with the economy still weak and value-added tax set to rise on January 1, the Confederation of British Industry said.
The CBI’s monthly distributive trades survey reported sales balance rose to +13 in November from +8 in October. That was in line with the consensus forecast from economists and the highest reading since November 2007.
The improvement was expected to continue, with retailers expecting a balance of +19 in December, the CBI said.
Shops reported the first monthly rise in the orders they placed with suppliers since January 2008, with this component of the index rising to its highest since November 2007.
“November’s CBI distributive trades survey suggests that the Christmas run-up in the high street has got off to a reasonable start,” said Jonathan Loynes at Capital Economics.
The monthly survey was boosted by sales of footwear, durable goods, furniture and carpets, while clothing and DIY sales were weaker.
The quarterly survey’s business situation balance rose to +13 — the highest since May 2004 — from -2 in August.
Updates from retailers added to the cautiously upbeat mood. Bellwether department store chain John Lewis JLP.UL said sales between Sunday and Wednesday were up over 20 percent on a year ago. If sustained through the weekend, this would represent the strongest year-on-year comparison the store has seen in 2009.
http://www.telegraph.co.uk/finance/economics/
