U.K. CBI Distributive Trades survey suggest slightly better retail sales performance in November

Retailers in the U.K. continue to struggle. The most recent official retail sales prints released earlier in November showed that the activity on the High Street decelerated in October after very solid growth in the second quarter and third quarter. However, the CBI Distributive Trades survey released today implied a slightly better performance in this sector. A net balance of 19 percent of respondents recorded higher sales this month, while the level of orders placed with suppliers also rebounded.

However activity was still well down on ‘normal’ levels for this time of the year, noted Daiwa Capital Market Research in a report. The additional survey questions, which the CBI includes on a quarterly basis, underscored the challenging situation for retailers.

The employment indicator implied net job losses in the sector for an eighth straight quarter, while investment intentions also came in negative, albeit just marginally after a marked fall in the three months to August.

“Against the backdrop of weak real income growth and structural changes, retailers expected business conditions to deteriorate over coming months. And although sales in December were expected to grow at a similar pace to the current month, the survey appears to be consistent with a slowdown in consumer spending this quarter”, added Daiwa Capital Market Research.

At 18:00 GMT the FxWirePro's Hourly Strength Index of British Pound was neutral at -18.7815, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 80.455. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex