3 January 2002, 14:29  UK's CBI says Dec year-on-year retail sales growth highest since 1987

LONDON (AFX) - Retailers enjoyed a bumper start to the crucial Christmas period, with year-on-year sales growth in the first two weeks of December the strongest since 1987, according to the the Confederation of British Industry. In its latest distributive trades survey, the CBI said the net balance of retailers reporting increased sales volumes in November rose to +48 from +29 in November and against an expected balance of +30. Those sectors doing particularly well include hardware, china and DIY. Grocers, specialist food and clothes shops also did well but booksellers and stationers, furniture and carpet stores and those selling footwear and leather goods fared less well and reported lower increases compared with last year. The survey's panel chairman and Boots director Alastair Eperon said the "significant increase" was "very encouraging" and added that it is vital that consumer spending remains strong when other parts of the economy are so weak. "If the retail sector can maintain this position it will provide underlying strength to the UK economy as we go into the New Year," he said. Though year-on-year sales growth was strong in December and the three-month moving average around the levels seen last spring, the CBI warned that sales volumes are likely to increase at a far slower year-on-year rate in January. Results of the December distributive trades survey are shown below. Figures are expressed in percentage points and show the balance of positive responses net of negative ones.

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