UK survey shows high street sales on the rise

High street sales are rising at their fastest pace in more than eight years as shoppers look to beat January's VAT hike, one survey yesterday suggested.

Despite the potential impact of the big freeze on footfall, the CBI reported that a positive balance of 56 per cent of UK retailers said volumes were stronger than a year ago in early December. It marks the highest level since April 2002.

The report revealed strong growth in sales from clothing and non-specialised stores, as well as the fastest sales growth for hardware and DIY outlets since the survey started in 1983.

It follows a picture of more subdued trading on high streets north of the Border after the Scottish Retail Consortium (SRC) this week reported flat like-for-like sales in November.

Fiona Moriarty, director of the SRC, warned that customers are still nervous about the New Year and cautious about spending.

The CBI's strong December sales figures also reflect comparisons with the tough trading conditions seen a year earlier.

A balance of 52 per cent of retailers said they placed more orders with suppliers than a year ago - the highest reading since December 1983 - ahead of the festive period. However, this falls to a balance of 24 per cent when firms are asked if they expect to increase orders next month, the CBI added.

Howard Archer, UK economist at IHS Global Insight, said it appeared that retailers were on course for a healthy Christmas despite the disruption to shopping caused by the snow.

He added: "This boosts hopes that consumers are determined to have a good Christmas despite significant economic worries and uncertainties."

Archer said firms would be hoping further bad weather did not get in the way of the key final shopping days before Christmas.