The Confederation of British Industry´s (CBI) total retail sales balance for the month of October has come in at a net +30%, versus last month´s reading of just +6%.

That was far better than the consensus estimate for a reading of +8% and means that a notably larger proportion of companies in the sector saw sales volumes increase versus the previous month.

The above was also the highest reading since June (+42%). Furthermore, retailers expect growth in sales volumes to be similarly robust in the year to November (+27% from +15% in September).

Nevertheless, and despite a second consecutive month of sales growth, high-street retailers still consider the volume of sales to be below average for this time of year (-7%). Having said that, sales were below seasonal norms to the least extent since April (0%).

Weak durable household goods sales

As might have been expected, there was solid growth in a number of individual retail sectors. Clothing and furniture & carpets reported the greatest year-on-year increases in sales (+57% and +58% respectively), with the clothing sector posting the first sales growth since July (+56%).

Grocers also reported a rise in year-on-year sales volumes for the sixth month running (+33%), and the footwear & leather sector remained strong, with sales increasing (+39%) for the seventh consecutive month.

Sales of durable household goods on the other hand were weak, some analysts are pointing out.

Analysts´ reactions:
Commenting on the data, Anna Leach, CBI Head of Economic Analysis, said: "It is great news that last month's sales growth has continued into October, at a much faster pace than expected, and that this momentum is expected to continue next month too.

"Falling inflation has somewhat eased pressures on family budgets, so that households are a little more willing to spend. But there's still a risk that on-going uncertainty over the global economic outlook could dent consumer confidence, hitting prospects for the retail sector, while the scope for inflation to fall further is limited."

Lastly, wholesalers saw a slight fall in sales volumes on a year ago (-6%), while the motor trades sector saw the first year-on-year rise in sales volumes(+4%) since March, although sales are expected to fall once again next month (-19%).



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