UK retail sales rise ahead of forecast
Jump heralds interest rate rise
October 24 2003
UK retail sales grew by shot up 0.6 per cent in September, stronger than the 0.4 per cent average forecast.
The bigger-than-expected increase makes it even more likely that the Bank of England will increase UK interest rates next month, after having narrowly voted his month to keep rates at 3.5 per cent.
The Office for National Statistics retail sales figures for September 2003 show underlying volume growth 3.5 per cent in September, slightly lower than the 3.7 per cent underlying rate for August.
Ssales volume growth was strongest amongst clothing and footwear retailers, who saw a recovery after lower sales during the unusally hot summer, and household goods retailers.
Food retailers saw below average sales volume growth of 3.3 per cent in September, while volume growth for department stores was just 2 per cent.
Paul Clarke, national director, retail & wholesale sectors at Barclays said: “Far from seeing an end to price deflation, falling prices are still with us and has been so for the past twelve months. The pessimists have been talking down the high street for a long time but, even into September, sales figures for clothing and household goods have continued to be strong.
“Encouraged by robust trading over the summer retailers are clearly upbeat as they enter the crucial Christmas period.”
