CBI distributive trades survey: Retail sales beat expectations in September
British annual retail sales grew at a faster pace than expected in the year to September, with firms expecting business to pick up pace in the run-up to Christmas, industry research shows.
Of the 119 firms surveyed by the Confederation of British Industry (CBI) distributive trades survey, 55 per cent expect sales volumes to increase in the year to September, with four per cent expecting a decrease, giving a balance, of 51 per cent – its highest since June.
It comes after 60 per cent of retailers said that sales were up in September compared with the previous year, whilst 11 per cent said they fell, giving a balance of 49 per cent, which is above expectations.
Clothing retailers and the grocers were the strongest drivers of growth, according to the survey, with volumes up 60 per cent and 32 per cent respectively, while specialist food and drink firms recorded their strongest growth since November 2013, at 47 per cent.
Orders placed on suppliers grew at the quickest pace since December 2010 and are expected to strengthen further next month.
“As the summer has been drawing to a close, consumers have been out on the high street boosting sales and orders for UK retailers,” CBI director of economics, Rain Newton-Smith, said:
“Low inflation and the recovery in wage growth are helping to stimulate consumer demand, but the slowdown in the global economy and tight margins mean retailers won’t get ahead of themselves as we head into autumn.”
The survey comes after official data earlier this month showed showed retail sales grew at a sluggish pace in August, leading analysts to warn that UK growth is hitting a "soft patch" in the third quarter.