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High Street sales staying steady | High Street sales staying steady |
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UK retail sales remained steady during November, despite concerns that consumers would rein in their spending. | UK retail sales remained steady during November, despite concerns that consumers would rein in their spending. |
Sales rose 1.1% in the three months to the end of November, compared with 1.3% in the three months to October, the Office for National Statistics said. | Sales rose 1.1% in the three months to the end of November, compared with 1.3% in the three months to October, the Office for National Statistics said. |
However, worries persisted that higher interest rates would dent consumer demand and slow the economy next year. | However, worries persisted that higher interest rates would dent consumer demand and slow the economy next year. |
A report conducted at the start of December by GfK found consumer confidence at its lowest since 1995. | A report conducted at the start of December by GfK found consumer confidence at its lowest since 1995. |
"As 2007 draws to a close, we see that consumers are suffering from a dose of realism," GfK's Rachael Joy said. | "As 2007 draws to a close, we see that consumers are suffering from a dose of realism," GfK's Rachael Joy said. |
GfK spoke to 2,000 individuals between 30 November and 9 December, while the Office for National Statistics data covered the month of November. | GfK spoke to 2,000 individuals between 30 November and 9 December, while the Office for National Statistics data covered the month of November. |
I don't think anybody's going to get hugely more optimistic about next year but spending is holding up better than it might have done Ross Walker, RBS | |
Consumers' perceptions of the climate for making major purchases stood at its lowest level since June 1991, GfK said. | Consumers' perceptions of the climate for making major purchases stood at its lowest level since June 1991, GfK said. |
That negative sentiment may take some time to filter through to the High Street, especially with Christmas and January sales on the way, analysts said. | |
Its impact could also be lessened by interest rate cuts, they said. | |
Earlier this month, the Bank of England cut its main rate by a quarter of a percentage point to 5.5%, and many observers are predicting more cuts to come early next year. | |
Cyber sales | |
In the Office for National Statistics (ONS) figures for November, the growth in retail sales came predominantly from food stores and growth in a category that includes online retailers. | In the Office for National Statistics (ONS) figures for November, the growth in retail sales came predominantly from food stores and growth in a category that includes online retailers. |
Average prices for the whole retail sector in November were 1.3% below their level at this time last year, suggesting that retailers had been cutting prices to lure shoppers. | Average prices for the whole retail sector in November were 1.3% below their level at this time last year, suggesting that retailers had been cutting prices to lure shoppers. |
On a monthly basis, retail sales climbed by 0.4% in November, pushing the annual rate of growth to 4.4%, the ONS said. | On a monthly basis, retail sales climbed by 0.4% in November, pushing the annual rate of growth to 4.4%, the ONS said. |
The category of "non-store retailing and repair", which includes online retailers, grew 5.9% compared with the same month last year. | The category of "non-store retailing and repair", which includes online retailers, grew 5.9% compared with the same month last year. |
"I don't think anybody's going to get hugely more optimistic about next year but spending is holding up better than it might have done," said Ross Walker, economist at RBS. |