Retail sales growth slows in October, says CBI

Retail sales in the year to October slowed following a strong showing in September, according to a survey from the Confederation of British Industry.

The CBI's distributive trades survey showed the trade balance fell to +19% from +49% in September and below expectations for +51%.

Expected sales for November came in at +24%, down from the +51% expected for this month.

Rain Newton-Smith, director of economics at the CBI, said: “Growth in sales and orders for high street retailers remains resilient, but there has been a slight slowdown in the pace of that growth following a strong September.

“Internet sales are starting to ramp up again as we head towards Christmas and we would expect them to continue this positive pattern until the end of the year.”

She added that low inflation and improving wages mean the prospects for sales growth are decent, but challenges remain, such as the weakening global economy and competitive pressures in the retail sector.

Howard Archer, chief UK and European economist at IHS Global Insight said: “While the CBI reported a slowdown in retail sales growth in October, this is still a very decent survey, especially given that sales had been so strong in September.”