Retail sales increase driven by clothing
Retail sales increase driven by clothing
Thursday 19th November 2009
UK retail sales rose at the fastest annual pace since May 2008 in October, figures from the Office for National Statistics (ONS) have shown.The value of retail sales was up three per cent year-on-year, with textile, clothing and footwear rising 4.2 per cent and the largest rise in non specialised, non-food stores, up 5.9 per cent.
Sales were bolstered in clothes stores by Halloween and people preparing earlier for Christmas because of the postal strikes.
Richard Lim, British Retail Consortium economist, said: "The official data confirm our findings that October’s retail sales growth was stronger than September's.
"Most non-food sectors, such as clothing and footwear, are well up on a year ago – when customers were dealing with the impact of the credit crunch and impending recession and concentrating on essentials.
"During the recession food has consistently been one of the best performing sectors. But as food inflation has begun to tumble food sales growth has slipped."
VAT is set to return to 17.5 per cent on January 1st, up from the current level of 15 per cent where it has been since November 2008. Some forecasters have said the recent rise in spending could be shoppers 'stocking up' before VAT rises again.
Duncan Higgins, senior analyst at Caxton FX, said: "The data is a positive sign that consumers are now feeling confident enough in their economy to go out and spend. It also supports signs that credit conditions in the UK are beginning to ease, in response to the £200 billion stimulus package."
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