UK high street sales remain buoyant

Consumer confidence appears not to have been substantially dented by the terrorist attacks on the US.

A Confederation of British Industry (CBI) report on retail sales in September showed that shoppers were continuing to flock to the High Street. Retails sales figures for September published by the CBI revealed that last month retail sales grew at their fastest rate for five years.

The CBI’s Distributive Trades Survey (DTS) found that 62 per cent of UK retailers had reported an increase in sales during September, while 8 per cent had experienced a decline in sales. Grocers came out on top with the largest increase, while shoe shops, specialist foods, and durable household goods also performed well. Although car sales had previously been reported to be down, the CBI survey indicated that sales had risen in September with the annual and the new licence plate format changes in the UK.

Chairman of the CBI’s DTS committee Alastair Eperon said: “The attacks on the United States may have dented UK consumer’s confidence but so far there is little evidence of any effect on their spending”.

But, despite the buoyant retail sales in September, Mr Eperon warned that many retailers were not confident about the future.

With the Bank of England’s Monetary Policy Committee meeting to decide on UK interest rates on Wednesday, the CBI have backed calls for another cut in the UK interest rate to help the UK economy through the current economic slowdown. (SP)