UK RETAILERS' hopes of strong year-on-year growth in sales volumes have been dashed for a second consecutive month, a survey has shown.
The survey, published yesterday by the Confederation of British Industry, signalled that a widely-predicted boost to clothing sales in recent weeks, with the belated arrival of colder weather, failed to materialise.
Clothing retailers experienced a significant year-on-year drop in sales volumes in November, according to the CBI survey.
And, while retailers remain optimistic about the outlook for the key festive trading period, the CBI survey is a further sign that growth in retail sales may slow significantly between the third and fourth quarters.
Of retailers surveyed by the CBI between October 28 and November 15, 35% reported that sales volumes were higher than a year earlier and 34% said they were lower.
This broadly flat net position contrasted with a balance of 23% of retailers which had, in the CBI's October distributive trades survey, predicted a year-on-year rise in sales volumes in November.
In the October survey, a balance of only 2% of retailers reported that actual sales volumes were higher than a year earlier. This contrasted with a balance of 31% which had predicted in September that sales volumes in October would be up on a year earlier.
The October and November survey outturns for actual sales are in stark contrast to buoyant readings for year-on-year growth in volumes in the CBI's distributive trades surveys for July, August and September.
Figures published yesterday by the Office for National Statistics highlighted the degree to which UK gross domestic product growth of 0.8% in the third quarter had been fuelled by overall consumer spending.
However, ONS figures published earlier this month showed that UK retail sales volumes fell by 0.7% month-on-month in October.
The CBI survey signals that UK retailers remain in recruitment mode in the run-up to Christmas.
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