Retail sales numbers surprise

Latest figures from the Office for National Statistics show retail sales beating City forecasts as fears that consumers would cut spending, due to the ongoing credit crunch, have proven (for now) overstated. Total sales volume increased by 0.4% between October and November. Or twice what analysts had been expecting.

Meanwhile, sales volume in the three months to November increased by 1.1% compared with the previous three months. This follows 1.3% growth in the three months to October.

Three-monthly growth in sales volume was 1.0% for predominantly food stores while for predominantly nonfood stores it increased by 0.8%. Growth was reported in each sector of retailing except for household goods stores, where sales decreased by 0.3%.

Sales in non-store retailing and repair increased by 3.8%, the largest increase for this sector since October 2006 (6.0%) - a sign perhaps that High Street retailers complaining about weaker sales are simply losing market share to online e-tailers.

Total sales volume in the three months to November was 4.8% higher than the same period a year ago - sales volume for predominantly non-food stores coming in 6.5% higher while sales volume for predominantly food stores increased by 1.4%.

For non-specialised stores (which include department stores) volume was 8% higher than the same period a year ago, the largest increase for this sector since April 2000 (8.1%).

The non-seasonally adjusted value of retail sales for the three months to November was 3.4% higher than in the same period a year earlier - the average weekly value of sales in November coming in at £5.6 billion. Or 3% higher than in November 2006.