The CBI has announced the strongest growth in retail sales volumes in almost three years in the first half of this month.
A 23% balance of retailers said sales for the period were ahead of a year earlier – the highest reading for the CBI business group’s distributive trades survey since May 2007, giving the high street a much-needed boost.
The result was a “clear improvement” on a snow-swept January, the CBI said.
Asda boss and chairman of the CBI distributive trades panel Andy Clarke added: “Sales have been stronger this month than many retailers predicted they would be, but that’s not surprising as January was impacted by VAT changes and forward buys in December”.
The figures come after official statistics last week showed sales volumes fell by a bigger-than-expected 1.8% in January.
The CBI survey found a 16% balance of retailers expect growth in March to be stronger than a year ago, although over the next three months the business situation is expected to be broadly stable.
Mr Clarke added: “While retailers see some growth ahead, the road to recovery through 2010 is likely to be fragile.
“Worries about the economy and upcoming pay freezes are likely to ensure that shoppers remain cautious”.
JP Morgan economist Allan Monks said the data “suggests that weather was a significant factor behind the drop in January”.
He added: “Given that weather appears to have affected most other consumer data last month, the CBI offers a comforting message that we might expect similar improvements in other February releases in the coming weeks.”
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