UK retail sales bounce back in October - CBI

UK retail sales bounced back in October, according to the latest Distributive Trades Survey from the Confederation of British Industry.

The CBI’s reported sales balance for the month rose to +18 from -20 in September. The balance is the weighted difference between the percentage of retailers reporting an increase and those reporting a decrease.

CBI principal economist Martin Sartorius said: "Retail sales volumes recovered to grow at a firm pace this month, but retailers continue to face a challenging operating environment due to rising costs, higher interest rates, and labour shortages.

"The Government must continue in its efforts to re-establish macroeconomic stability and restore business confidence. Delivering comprehensive reform on business rates and the Apprenticeship Levy would be helpful first steps to encourage business investment through these difficult times."

Pantheon Macroeconomics said: "Retail sales appear to have recovered in October, supported by a temporary increase in government support to households’ disposable incomes.

"Admittedly, the reported sales balance likely was depressed in September by the additional public holiday for the Queen’s funeral, so it was always likely to rebound."

The survey was carried out between 27 September and 13 October. A total of 127 firms responded, including 53 retailers.