CBI says housing market drove March retail sales

The Confederation of British Industry, it its most recent survey of retailers, has said that 52 percent of retailers sold more this March than they did last year at the same time, while only 20 percent said that sales were down from last year. The 32 percent difference was the best positive balance since December 2004, according to the CBI.

Much of the positive news, the chairman of the CBI’s distributive trades survey panel said, was tied to the still-thriving housing market. Strong growth was seen, he said, in demand for hardware, do it yourself products and household goods. In addition, sales of carpets and furniture was up from last year.

On the down side, however, it is possible that the retail boost from the housing boom could be coming to an end. The Bank of England has reported that mortgage approvals were flat in February at 119,000, staying at January’s level rather than rising. The number was a bit higher than the 117,000 mortgages expected to be approved, but it was below the six-month average of 122,000.

The decline in mortgage approvals was in line with a decline in the rate of growth in unsecured borrowing by individuals. While borrowing was up by £900 million in February, putting the annual growth rate at 5.5 percent, that was lower than the annual rate of 5.8 percent in January.

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