High street sales see 'strong growth' in December

Thursday, 16 December 2010 12:00

Retailers have seen "strong" growth in high street sales this month compared with a year earlier, according to a new report.

The latest sector snapshot from the Confederation of British Industry (CBI) revealed 67 per cent of businesses reported trade has increased on an annual basis, while only 11 per cent claimed it has declined.

At plus 56 per cent, the resulting balance was the strongest reading for high street sales since April 2002, the organisation noted.

The top-performing sub-sectors this month have been hardware and DIY, groceries, clothing and non-specialised retail, which includes department stores.

Looking ahead, a net 35 per cent of respondents to the CBI survey said they expect sales to grow year-on-year in January.

Commenting on the figures, CBI chief economic adviser Ian McCafferty said December trade has been partly lifted by shoppers bringing forward purchases to beat the increase in VAT from 17.5 per cent to 20 per cent, which comes into effect in 2011.

"We remain cautious about prospects for the retail sector further ahead, given ongoing uncertainty over the resilience of consumer spending," he added.

The CBI's figures come after Barclays predicted Britons will fork out a record £48.9 billion during this year's Christmas shopping season.

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