Partner Article

CBI report growth in the high street

Tentative growth has returned to the high street, according to the CBI, with UK sales growing modestly in the year to October.

The latest Distributive Trades Survey (DTS) showed 41% of respondents said volumes had risen, a balance of +8%, higher than the anticipated +3%.

Andy Clarke, Chairman of the CBI Distributive Trades Panel, said: “The latest official data shows the economy is still in recession, however the retail sector seems to be finding its feet again after a challenging year, and the outlook for November is encouraging. But overall the economy remains troubled and some retailers will find the recovery slow and painful.

“It is heartening to see signs of life in sectors related to the housing market, particularly those retailers selling white goods and furniture, who have had a torrid two years. And we think some consumers will bring forward big ticket purchases to beat the VAT rise in January.”

The DTS shows expectations from 136 businesses, a balance of 19% expect sales volumes to improve in the coming months, the most optimistic response since July 2007.

Motor traders’ sales volumes fell in the year to October (a balance of -40%), despite a flat September (+1%), and a net 46% expects sales to fall in November. Sales were harder hit for traders of vehicles, rather than those selling parts & accessories, who reported sales to be broadly flat.

This was posted in Bdaily's Members' News section by Ruth Mitchell .