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Retail sales rise on Black Friday discount boost | Retail sales rise on Black Friday discount boost |
(about 1 hour later) | |
Retail sales volumes jumped by 5.9% in November compared with the same month last year as shoppers took advantage of Black Friday discounts. | |
But higher fuel costs meant the rise was not as strong as in October, when annual retail sales growth hit a 14-year high of 7.2%. | |
Monthly sales in November rose 0.2%, compared to October's increase of 1.8%. | |
The data showed annual fuel sales hit a two-year low last month as fuel prices rose at the fastest rate since 2011. | |
Figures released earlier this week revealed that rising fuel prices had contributed to a rise in the inflation rate in November, which climbed to a two-year high of 1.2%. | |
Paul Sirani, chief market analyst at Xtrade, said: "The retail sector has been in fine fettle since Brexit and, although [Thursday's] figures are not as strong as October's, there is plenty of reason to believe that shoppers will continue to spend well over the festive period." | |
But he added: "The forecast for rising inflation next year is a big worry for consumers. Prices look set to soar in 2017 and households could be put under huge strain." | |
Kate Davies, senior statistician at the Office for National Statistics (ONS), which compiled the retail sales figures, said: "Retailers saw continued growth in the run up to Christmas. | |
"Department stores and household goods stores had a particularly strong month, especially in sales of electronic goods, boosted by 'Black Friday' deals." | |
Chris Williamson, chief business economist at IHS Markit, said November's data indicated that fourth quarter retail sales were running 2.1% ahead of the previous three months. | |
However, he warned that falling construction output and industrial production could prevent GDP reaching the 0.5% growth recorded in the third quarter of the year. | |
He also noted that consumer spending is likely to come under pressure. | |
"Evidence suggests that spending is currently being driven at least in part by historically high levels of employment and rising wages. | |
"However, this looks set to change next year, when the combination of higher inflation and weak pay growth are likely to curb consumer spending." |
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