Retail sales growth slows again in November but employment rises, says CBI
Retail sales in the year to November slowed again, while orders fell for the first time since April, according to a survey from the Confederation of British Industry.
However, firms have been recruiting at their strongest rate for 17 years and expect sales to recover next month, the survey showed.
The CBI's distributive trades survey showed the trade balance fell to +7% from +19% in September and significantly below expectations for +24%.
David Morrison, market analyst at SpreadCo, said: "On the face of it this is a pretty grim number. But this data series is notoriously volatile and often over or undershoots market expectations. In addition, it is a poor predictor of holiday sales, so there is no reason to worry unduly that retailers are heading for a difficult Christmas period."
Rain Newton-Smith, the CBI’s director of economics, said: “After a stronger showing earlier in the year, retailers will naturally be disappointed by the unexpected slowing in sales growth in November, which may be related to the mild start to the autumn.
“Nevertheless, it’s encouraging that retailers have been boosting employment and we expect that trend to continue.”
She said high street conditions remain competitive, with many sectors still cutting prices to attract customers, but ongoing improvements in wages along with low inflation should continue to support household spending.