Growth in UK retail sales volumes picked up modestly for the second month running in October after the summer lull, according to the Confederation of British Industry (CBI). However, the CBI's latest distributive trades survey also warned that growth was still lower than expected and remained well below the highs reported in the first half of the year.
The CBI survey said 44pc of firms saw sales rise from a year ago while 19pc saw a fall. The balance of +25pc is the best since May this year but still significantly lower than the average of +40 registered between January and April. In September, the balance was at +18. The October balance was boosted by base effects and the wet weather. Retailers were optimistic about the future, expecting a modest pick up in growth for the year to November, with expectations recovering to levels last seen in April.
Retailers said stock levels have edged up to their highest since May reflecting the continued growth in orders placed on suppliers which rose for second straight month.// www.fxcentre.com