CBI reveals retailers fears for 2011
According to the latest Confederation of British Industry (CBI) distributive trades survey, retailers are optimistic about the Christmas period but have expressed their concerns for 2011.
Many retailers share the same fear for next year as Government spending cuts kick in and the VAT rise takes effect on 1 January.
The CBI’s survey established that the sales balance rose to +43 this month from +36 in October – this was just shy of September’s six-year high of +49.
Commenting on the survey, Ian McCafferty, chief economic adviser to the CBI, said: “Looking into the new year, retail sales growth may lose some of its sparkle, as consumers rein in spending after Christmas.”
However, earlier this week, the latest Markit Economics survey revealed that the UK could be in for a bleak Christmas as households are squeezed amid higher consumer prices.
The survey also revealed that consumers’ enthusiasm for buying “big-ticket” items has slumped to its lowest level since February 2009.
With inflation remaining stubbornly high, the cost of essentials are higher and this appears to be squeezing household finances, said Markit.