UK retail sales volumes have shown solid year-on-year growth for a fourth consecutive month, according to a survey from the Confederation of British Industry.
The latest monthly CBI distributive trades survey, conduced between September 25 and October 15 and published yesterday, painted a more upbeat picture than other recent indicators of retail sector activity.
It was viewed by economists as providing some reassurance, at a time of mounting evidence that the UK's unbalanced economic recovery is slowing.
Subtracting the proportion of respondents experiencing a fall from that enjoying a rise, a net 31 per cent of retailers reported a year-on-year increase in sales volumes. This continued to signal significant year-on-year growth in sales volumes, matching the 31 per cent balance in the CBI's September survey. The corresponding balances in the July and August surveys were 21 per cent and 37 per cent.
In the CBI's June survey, only a net four per cent of retailers had reported year-on-year growth in sales volumes.
Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "Following some recent mixed news on the economy, a very decent October CBI distributive trades survey provides some reassurance that consumers are still prepared to spend at a healthy rate.
"Retailers will be very much hoping that this remains the case as the critical Christmas period looms on the horizon."
Contemplating the outlook, Mr Archer added: "There are certainly still decent supports for consumer spending and retail sales going forward, notably high and rising employment and very low consumer price inflation.
"Nevertheless, it remains questionable how strong consumer spending can be on a sustained basis until current very low earnings growth picks up appreciably."
The CBI survey followed figures last week from the Office for National Statistics showing UK retail sales volumes fell by a seasonally-adjusted 0.3 per cent between August and September.
A survey last week from the Scottish Retail Consortium showed the value of retail sales north of the Border fell in September at the sharpest year-on-year pace since records began in 1999, excluding distortions related to the timing of Easter.
Figures published earlier this month by the British Retail Consortium showed the value of UK retail sales in September was down by 0.8 per cent on the same month of last year. And this marked a significant deterioration, with UK retail sales value having been up by 2.7 per cent year-on-year in August.
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