MNI DATA: UK Retail Sales Firm In November: CBI Survey

--November Retail Sales Volumes Balance +19 Vs +5 In October

By Jai Lakhani

     LONDON (MNI) - UK retailers reported accelerating retail sales volume

growth in November, after an October cooling off, a CBI survey published Tuesday

showed.

     The reported sales volume balance rose to +19 in November, up 14 points

from October and 2 points above the volume of sales retailers expected for month

when asked back in October. The number also rose above the three-month moving

average of +16.0. 

     Adding to the positive reading is retailers expect the sales volume balance

to shift up further in December to +22. However, it is worth noting that given

the time of the year, sales were reported to be poor, but the effect of this was

muted in comparison to October. 

     Expansion was seen in sales volume figures across grocers, durable

household goods, recreational goods, non-store and other normal goods

sub-sectors. However, retailers reported a slowdown in annual internet sales

growth in November, after five months of growth at-or-above the average. 

     Within the retail sector, sales volumes were mixed. Clothing, footwear &

leather, furniture & carpets, and hardware & DIY sub-sectors registered falls,

with footwear & leather the worst performer, with an index reading of -31. Motor

traders also saw volumes fall in the year to November, for the first time in 7

months.

     More positive signs came from grocers, durable household goods,

recreational goods, non-store, and other normal goods sub-sectors. The rise in

grocers volumes could be linked with the ONS reporting in the October release

anecdotal evidence of consumers buying Christmas food early. 

     The expected volume of orders placed upon suppliers was fairly average for

the month of December at +15. Should expectations be correct, retail sales could

continue on its moderating path after the summer. 

     ----"GLOOMY" OUTLOOK 

     "While it is encouraging to see headline retail sales growth strengthen in

November after a weak outturn in October, the quarterly survey continues to

paint a gloomy picture of the sector. Business sentiment remains poor,

investment intentions are flat, and headcount continues to decline," said Anna

Leach, CBI Head of Economic Intelligence.

     "Firms have been resilient during this period of seismic uncertainty,

protecting livelihoods across the country, but it has nonetheless cost

investment and jobs, hitting the most vulnerable hardest," she added. 

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MABDS$,M$B$$$,M$E$$$,MT$$$$]