Retailers enjoyed a surge in sales over January, confounding expectations that gloomy Christmas retail figures would spill over into the New Year, according to a new report.
The latest monthly report by the Confederation of British Industry (CBI) revealed that 53 per cent of retailers enjoyed increased sales compared with last January, with 15 per cent suffering a dip. The balance of plus 38 is the best figure since April 2002.
The CBI said that anecdotal evidence suggested that the increase in sales was mainly due to widespread discounting on the high street and that the year-on-year rise could be put down to poor sales in January 2003.
However, the business lobby group said that the strengthening retail sector will continue its upwards trend in February, albeit at a slower rate than last month.
Booksellers and retailers dealing in furniture, electrical goods and carpets reported the strongest sales growth in January, although clothes shops did not fare so well.
It was anticipated that the sluggish retail sales over Christmas could continue into January, but these latest figures provide further evidence that the UK economy is well on its way to recovery after the recent downturn.
Ian McCafferty, chief economic advisor at the CBI, said that the survey shows that many retailers had a better January than they were expecting.
“However, trading announcements over the last month suggest that performance has been particularly store or even goods-specific.
“Overall the retail sector looks to be healthy, but reports of price discounting suggest that competition remains intense and firms will be hoping that the Bank of England continues its gradualist approach to raising interest rates when it meets tomorrow,” he said.
