U.K. CBI realized sales drop more-than-expected

Published 11/28/2011, 06:11 AM
GBP/USD
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Investing.com – Retail sale volumes in the U.K. declined significantly more-than-expected in November, falling at the fastest rate since March 2009, industry data showed on Monday.

In a report, the Confederation of British Industry said the result of its index of U.K. retailers fell by 8.0 points to minus 19.0 in November from a reading of minus 11.0 in October.

Analysts had expected the index to ease down by 1.0 point to minus 12.0.  

On the index, a reading above 0.0 indicates higher sales volume, below indicates lower. 

Sales volumes were considered below average for the time of year, with a balance of minus 39.0, the weakest figure since March 2009.

Employment across the sector fell at the fastest rate since November 2009, with the corresponding index falling to minus 27.0.

Looking ahead to December, retailers expect the pace of decline in sales to ease somewhat.

Commenting on the report, Chair of the CBI Chief Economic Advisor Ian McCafferty said, “Retailers may be hoping that shoppers will loosen their purse strings in the run up to Christmas, but consumers are likely to remain cautious about spending given the uncertain economic outlook.”

He added that, "The relatively mild weather this autumn has hit clothing stores particularly hard and retail sales are down year-on-year for the sixth month in a row.”

Following the release of the data, the pound remained higher against the U.S. dollar, with GBP/USD surging 0.92% to trade at 1.5583.

Meanwhile, European stock markets were sharply higher. The FTSE 100 jumped 2.15%, the EURO STOXX 50 surged 3.7%, France’s CAC 40 rallied 3.8%, while Germany's DAX soared 3.2%.


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