LONDON (MNI) – UK retail sales volumes surged to their highest
level in over 6 years, according to the Confederation of British
Industry’s September survey.

Retail sales balances in the latest CBI survey all hit multi-year
highs, with sales boosted by the bank holiday and end-of-summer
discounts, the CBI said.

The reported sales volume balance in September – which hit 49% –
was the highest balance seen since May 2004 and the expected sales
volume balance of 47% for October was the highest since October 2001.

The rise in retail sales volumes was reflected in increased orders
placed on suppliers. The reported volume of orders on suppliers in
September rose to 39% from 37% in August and was the highest since April
2002.

The expected orders volume balance at 40% in October compared with
29% in September and was the highest since September 1996.

CBI Chief Economic Adviser Ian McCafferty said: “The bank holiday
weekend combined with the tail end of summer sales have resulted in a
bumper period for retailers.”

He added that, “as we get closer to January, sales will be helped
by households seeking to beat the VAT rise. However, weak prospects for
take-home pay mean consumer spending is likely to be fairly restrained
in 2011.

The survey was conducted between Aug 26 and Sep 15.

–London newsroom: 00 44 20 7862 7491; e-mail: drobinson@marketnews.com

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