Friday, January 28, 2022

Strong retail growth over November but warning signs begin to show

Big shopping events like Black Friday and Cyber Monday have pushed the retail sector into growth throughout November.

Latest figures from the Office for National Statistics show that sales increased by 0.5 per cent excluding fuel from October, and a healthy 5.9 per cent from November 2015.

Department stores and electrical retailers faired best last month, with high hopes of strong sales continuing over Christmas. Online sales were also up 24.9 per cent on last year.

READ MORE: Inflation has arrived

Despite the positive results many analysts have issued warnings for next year, as figures released earlier this week revealed a less promising picture of rising inflation.

“A substantial correction is coming. Next year will be very different,” Pantheon Macroeconomics chief UK economist Samuel Tombs said.

“The squeeze on real incomes from higher inflation and slower employment growth will push the rate of growth of retail sales down sharply. For now, though, consumers‘ spending continues to drive economic growth.”

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