Retail sales rise

A survey has shown that retail sales in October rose beyond expectations and at their sharpest in three months. According to the Confederation of British Industry (CBI) 37% of companies saw their sales rise, as opposed to 26% that reported a drop in sales in October. The result gives a balance of +11, which is well above the 1 ½ year low in September.

Retailers are optimistic about sales picking up further in November. However, the CBI warns that retailers shouldn't be overly confident because sales growth still isn't what it should be for this time of year. It has cautioned the Bank of England to refrain from raising interest rates. John Longworth, chairman of the CBI's survey panel told reporters that he did not feel that the current conditions warranted a raise in interest rates and feared that the effects could be potentially damaging if the Bank of England made any changes now. 200 companies responded to the survey, which was held between 29 September and 20 October.