Growth in UK retail sales - CBI

UK retail sales in October grew at their fastest year-on-year rate for 18 months, according to the latest monthly trades survey from the Confederation of British Industry (CBI).

The net balance of retailers reporting increased sales volumes rose to +35 in October from +17 in September, the CBI said.

The October balance was the highest since April 2002 and compares with the +28 balance that had been expected.

The CBI said the recovery was wide-spread with sales growth in all but one of the retailing sectors.

Grocers saw the strongest growth followed by sellers of hardware, china and DIY goods.

Only shops selling durable household goods, such as washing machines, saw their sales fall.

CBI chief economic adviser Ian McCafferty has said expectations for November are positive and that the case for a rise in interests rates has been strengthened, although he recommends no sudden decisions made in this area.

"The recent recovery in the wider UK economy is in its early stages and is still fragile. The Bank needs to ensure that it does not damage business confidence with a series of quick rate rises," he said.