Little festive cheer as British retail sales inch up, and government borrowing falls – business live
Share:
Rolling coverage of the latest economic and financial news.
There’s “little festive cheer for retailers” in today’s sales figures, reports Alex Kerr, UK economist at Capital Economics.
Not only was the rise in sales lower than expected on November, sales are still on course to decline in the October-December period, Kerr explains, adding;.
Given that October’s 0.7% m/m (month-on-month) fall in sales volumes appeared to be driven by households spending cautiously ahead of possible tax rises in the Budget and that the Chancellor avoided large personal tax rises, it is somewhat encouraging that sales volumes rebounded in November.
That was helped by the ONS seasonal adjustment capturing the unusually late timing of Black Friday this year.
Sales volumes in ‘other’ stores and household goods stores rose by 2.5% m/m and 1.1% m/m respectively. And food stores posted a 0.5% m/m gain.
But sales at department stores fell by 0.9% m/m and sales at clothing stores followed October’s 3.5% m/m drop with a further 2.6% m/m decline as households continued to delay spending on winter clothing. And fuel sales fell by 0.7% m/m, probably as petrol pump prices rose by 0.9% m/m.
“Borrowing this month was over £3 billion less than this time last year and the lowest November borrowing for three years. Central government tax receipts grew compared with last year, while increased spending on public services and on benefits were offset by lower debt interest payable.”.
