–Adds Detail To Version Transmitted At 1110 GMT
LONDON (MNI) – Retail sales were surprisingly strong in February
according to the CBI survey, after official data showed two robust
months in December and January.
The headline February reported sales volume balance came in -2%,
sharply up from -22% in January, and above analysts’ median forecast for
a -12% outturn. The expected sales balance for March rose to 2% from
-10% in February, and March’s expected orders volume balance rose to -3%
from -23% in Febuary, with the CBI saying the data showed the sector
stabilising.
February’s three month moving average rose to -5% from January’s
-11%, the highest outturn since last July. Bank of England Monetary
Policy Committee members’ have talked about consumption picking-up in
the second half of the year as the squeeze on real earning eases as
inflation comes down, but retail sales data have shown a marked pick-up
at the start of 2012.
Volumes of stocks in relation to demand dipped to 7% from 10%, and
are expected to fall further, to 5%, in March, which should support
orders volumes going forward.
The CBI’s quarterly survey showed inflation pressures easing.
February’s quarterly average reported selling prices balance fell to 49%
from 56% back in November, while the expected selling prices balance
dropped to 45% from 54%.
The retail sector continues to shed jobs, although the pace of
layoffs eased. The reported quarterly employment balance fell to -16%
from -27%, and the expected employment balance was also -16%.
The CBI’s quarterly Distributive Trades Survey was conducted over
the first two weeks of February.
Judith McKenna, Chair of the CBI Distributive Trades Panel and ASDA
Chief Operating Officer, said: “It’s good to see there are more positive
signs on our high streets.”
“With disposable incomes under constant pressure, retailers remain
concerned about the general business outlook for the rest of 2012,” she
added.
–London bureau: 44 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]
