UK retail sales growth slowed in October, says CBI

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image captionThe CBI reckons spending growth will slow in 2011

Retail sales slowed in October from the month before, according to the latest CBI distributive trades survey.

The CBI said that although sales rose for the fourth month running, the slower pace reflected a more subdued housing market.

The survey found that 58% of retailers said sales rose in October, with 22% reporting a fall, a balance of +36%.

This down on the +49% in September, and below the +47% retailers had forecast for October in last month's survey.

Lai Wah Co, the CBI's head of economic analysis, said: "High Street sales in aggregate have performed well again this month, but sales of durable household goods have slowed noticeably, in line with more subdued housing market activity of late."

As in the previous month, the clothing, footwear and leather sectors saw strong sales growth.

Looking to November, a balance of +43% of retailers expect a higher volume of sales than a year ago.

"Retailers expect sales growth to continue next month, in the run-up to Christmas. We should also see a boost to sales as shoppers look to beat the New Year VAT rise," the CBI said.

"But looking beyond that, broader consumer caution may temper growth in spending in 2011."

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