UK retail sales grow more than expected in September, says CBI

Retail sales grew at a much stronger rate than expected in the year to September, and the robust growth is expected to continue next month, according to the Confederation of British Industry’s latest monthly Distributive Trades Survey.

The survey showed sales volumes were well above the average for the time of year.

The CBI said realised trades rose to +49 from +24 in August and a three-month low of +21 in July, beating analysts’ expectations for a balance of +28.

Growth was seen across all retail sectors, with the largest drivers being grocers and clothing. Internet sales volumes slowed slightly but are set to pick up a little in October.

Growth in sales volumes for wholesalers eased, while motor traders reported their strongest growth since June 2014.

Rain Newton-Smith, CBI Director of Economics, said: “As the summer has been drawing to a close, consumers have been out on the high street boosting sales and orders for UK retailers.

“Low inflation and the recovery in wage growth are helping to stimulate consumer demand, but the slowdown in the global economy and tight margins mean retailers won’t get ahead of themselves as we head into autumn.”

Howard Archer, chief UK and European economist at IHS Global Insight said: “A very strong CBI distributive survey for September provides reassurance that consumers are still very much alive and kicking.”