UK retail sales rise at fastest pace in 12 months to Nov, decent growth likely in the near-term

According to the latest survey by the Confederation of British Industry, UK retail sales grew at their fastest rate in more than a year earlier in November as colder weather continued to boost clothing sales. Shoppers have shown little sign of retrenching spending since Brexit vote despite a sharp fall in sterling that looks set to push up prices early next year.

The survey of 126 firms by CBI showed retail sales balance rose to +26 in November from October's reading of +21, its highest since September 2015 and better than economists' forecasts for a fall to +12. British retail sales volumes rose at their fastest annual rate since April 2002 last month, growing by 7.4 percent according to official data, as demand remains strong in the wake of June's EU referendum.

Investment intentions for the year ahead were weaker than the previous quarter, but remained marginally positive. Average selling prices rose modestly, in line with expectations and retailers expect the overall business situation to improve slightly over the upcoming quarter.

"While we expect to see decent growth in the near term, retailers are keeping a close eye on price rises coming down the track and the impact on consumer spending," CBI chief economist Rain Newton-Smith said.

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