MNI DATA ANALYSIS: UK Nov Sales Bounce Back After Oct Low: CBI

--Year-Over-Year Growth in Selling Prices Highest in Over 26 Years

By Jamie Satchithanantham

     LONDON (MNI) - UK retail sales bounced back emphatically in November in the

run up to Christmas, with the weaker pound pushing up prices growth to a

multi-year high, the CBI Distributive Trades survey published Thursday revealed.

     A net +26 of retailers reported a rise in sales volumes in the November

survey, markedly higher compared to expectations made in October. It follows the

plummet in the index witnessed in October, where sales expanded at the lowest

pace since March 2009, the peak of the last financial crisis. 

     The expected sales volume balance for November made in October was just +3%

and in December the balance was expected to rise further to +30.

     The orders picture was also better than expected, with the associated

balance coming in at +22, significantly better than the -11 expectation made a

month ago. In December retailers expected the balance to hold firm at +22.   

     The survey of 128 respondents also noted the strongest growth in average

selling prices since May 1991 in November, attributed to the weaker pound in

wake of last year's EU referendum.

     Despite the improved performance in the headline index, Rain Newton-Smith,

CBI Chief Economist, said that there were still concerns over the underlying

conditions within the retail space.

     "It's great to see retail sales rebound this month after a big dip, but

let's be clear: our high streets are not out of the woods. Ahead of the crucial

run up to Christmas, the weaker pound has pushed up prices and retailers are

nervous about business conditions and are trimming their workforces," she said.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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