UK retail sales growth slowed sharply in November amid weak demand, defying expectations for a rebound, while retailers hired staff at the fastest rate in 17 years as they expect strong sales growth next month, results from a survey by the Confederation of British Industry showed Tuesday.
The sales volume growth balance fell to 7 from 19 in October and was well below the expects score of 24, the CBI's quarterly Distributive Trades Survey of 117 firms showed. Economists had forecast a balance of 25.
Sales volume growth slowed for a second straight month in November, the CBI said. Retailers expect sales growth to improve next month and the corresponding balance was 31.
"After a stronger showing earlier in the year, retailers will naturally be disappointed by the unexpected slowing in sales growth in November, which may be related to the mild start to the autumn," CBI Director of Economics Rain Newton-Smith said.
Growth is expected to recover in December during the Christmas period and recruitment to remain robust, the CBI said. Average selling prices are also expected to stabilize, after falling back once again year-on-year in November, the industry lobby added.
Order placed with suppliers declined for the first time since April, though sales were narrowly above average for the time of the year, the survey said. Bookings are expected to improve next month.
Despite the slowdown in sales growth, retailers hired strongly in November and the corresponding balance was 29, which was the highest since November 1988's 34. They also expect to recruit more staff next month and the relevant balance was 24.
Internet sales grew steadily in November, giving a balance of 35 and sales are expected to surge next month as suggested by the 51 balance.
Overall business situation was expected to improve over the next three months and the relevant survey balance was 11, which was half of that for the previous quarter.
Investment intentions over the next year remained positive for the second straight quarter, but the pace weakened.
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