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Numbers down for first time in six months
British retail sales fell in November for the first time in six months, reducing hopes of a strong economic recovery, according to official figures released by the Office for National Statistics.
According to the report, British sales volumes were down 0.3 percent between October and November – the first month-on-month fall since May. Among retail sectors, department stores had the worst performance, where sales fell by 4.4 percent – the biggest drop since records began in 1988. Clothing and footwear sales also declined by 1.8 percent.
The report shows November's year-on-year sales are still 3.1 percent higher than last year, but analysts warned that trading conditions remained difficult. "Not only do November's official UK retail sales figures show a drop in high street spending, but timelier anecdotal evidence suggests that December got off to a slow start, too," says Vicky Redwood at Capital Economics.
In an effort to spur spending, the British government cut the value-added tax (VAT) rate from 17. 5 percent to 15 percent rate in December 2008. That reduced rate is expected to rise to its original level in January.
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