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
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.
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.
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.
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
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.
"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.
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