LONDON (MNI) – High street sales volumes rebounded in December
after a sharp fall in November, according to a CBI survey.
The headline December sales volume balance came in at 9%, up from
-19% in November and the first positive reading since May this year.
Retailers do not, however, expect the good news to continue with the
expected sales balance for January falling to -18%, back-in-line with
the November outturn.
With volumes picking up orders placed on suppliers also improved.
The December orders volume balance rose to -4 from November’s -25, and
the expected orders balance climbed to -8 from -18.
The three month moving average for sales volumes rose to -7 from
November’s -15.
The read across from the CBI data to official sales numbers is far
from straightforward. The latest official data showed fairly robust
sales growth when October and November volumes were put together, while
the CBI figures were more downbeat.
There have been plenty of reports of pre-Christmas discounting by
retailers, and the CBI said this may have boosted December sales.
“Early discounting helped retailers add a little extra sparkle to
their sales in December, although the reprieve appears to only be
temporary as they don’t expect sales to continue to grow into January,”
Judith McKenna, Chair of the CBI Distributive Trades Panel and ASDA
Chief Financial Officer, said.
“Consumers are continuing to hold off on purchasing big ticket
items, including durable household goods,” she added.
The December CBI Distributive Trades Survey was conducted between
November 28 and December 12.
–London bureau: 44 20 7862 7491; email: ukeditorial@marketnews.com
[TOPICS: MABDS$,M$B$$$]
