25/11/2010
High street stores have experienced a boost in sales for the first time in three months, thanks to pre-Christmas sales, reports The Independent.
The Office of National Statistics (ONS) reported a 0.5 percent increase in sales, driven mostly by non-food stores and a high demand for clothing, footwear and textiles. Evidence suggested that consumers were spending their money on "big ticket" purchases, such as computers, white goods and furniture, in a bid to beat the VAT rise in January.
The report also confirmed that the recent rise in cotton prices had not affected prices on the high street. The director of the British Retail Consortium, Stephen Robertson said today: "Food sales growth is the driving force behind this modest increase in overall sales."
An additional survey by the Confederation of British Industry showed that 21 per cent of UK manufacturers' total order books were "above normal", shedding positive light on the British economy. The massive increase seen in order books encouraged many businesses to use invoice discounting as a way of generating cash quickly, allowing them to expand their work force at short noticed and deliver the orders.
Robertson added that retailers' promotions and discounts have successfully persuaded the public to kick-start consumer spending.
Deborah Bates