Retailers enjoy increased sales and improved economic conditions
Retailers across all sectors enjoyed a strong rise in sales volumes in the year to October and expect to see that growth continue in to next month, according to the latest figures from the CBI.
Its monthly Distributive Trades survey, covering the first two and a half weeks of October, found that 47% of retailers said sales volumes were up on a year ago whilst 17% had seen sales fall.
Retailers expect growth in sales volumes to be up year-on-year in November by 27%.
Despite the second consecutive month of sales growth, high-street retailers still considered the volume of sales to be below average for the time of year (-7%).
The grocery sector saw an increase on year-on-year sales volumes for the sixth month running (+33%).
Anna Leach, CBI Head of Economic Analysis, said: "It is great news that last month's sales growth has continued into October, at a much faster pace than expected, and that this momentum is expected to continue next month too.
"Falling inflation has somewhat eased pressures on family budgets, so that households are a little more willing to spend. But there's still a risk that on-going uncertainty over the global economic outlook could dent consumer confidence, hitting prospects for the retail sector, while the scope for inflation to fall further is limited."
Wholesalers saw a slight fall in sales volumes on a year ago (-6%), despite expectations of modest growth (+6%), and sales are expected to continue falling in November (-6%).