CBI: recovery on way for the high street
SALES on Britain’s high streets grew in October at their fastest annual rate in almost two years, the Confederation of British Industry (CBI) said yesterday, raising hopes that the retail sector will see a recovery sooner rather than later.
In its monthly distributive trades survey, the business lobby said that a net balance of eight per cent of retailers reported that sales had risen and a net 19 per cent expect sales volumes to continue growing in November, the most optimistic since July 2007.
Andy Clarke, chairman of the CBI Distributive Trades Panel, and chief operating officer of Asda, said: “The latest official data shows the economy is still in recession, however the retail sector seems to be finding its feet again after a challenging year, and the outlook for November is encouraging. But overall the economy remains troubled and some retailers will find the recovery slow and painful.”
The CBI report was especially welcome after weak third quarter GDP data, but analysts warned that the improvements were more a reflection of previous weakness last October – in the wake of the collapse of Lehman Brothers – than of current strength of sales.