Although we are right up to Christmas the CSO are still releasing data. Today we got the first estimates of the November Retail Sales Index. The all-business index is showing some stability but as is usual we will focus on the retail sales index excluding the motor trades.
In November the motor trades make up 14% of the index. Here are the value and volume indices for the remaining 86% since January 2008. The most recent trend is down, particularly for the value index. The gap between the two indices continues to grow, reflecting the deflationary pressures that still persist in many retail sectors and a greater “value for money” drive among consumers.
The value of sales fell by 0.4% in the month, with volume declining 0.2%. This index has not shown any sign of increases since April. The only positive monthly changes recorded since then were in August and they were only just above zero.
After edging towards positive territory for the past few months the annual changes took a slight dive in November. By value sales are now 1.9% behind last year with a decline of 0.9% in the volume index.
The retail sales index rose in the early part of the year to April. However, since then the downward trend has resumed. In the last six months the value index of retail sales excluding the motor trades is down 4.8% with volume down 2.4%.
The National Accounts might indicate that the economy is growing but this is entirely an export-driven trend. The domestic economy continues to deteriorate. The recent inclement weather is likely to further damage retail sales, though shoppers may come out in force in January.
However, with tax increases and benefit cuts soon to come into force we can expect retail sales to continue to struggle. In particular, the annual growth rates will deteriorate further as the comparison will be made to the short-lived “turning the corner” momentum of the early months of 2010.
No comments:
Post a Comment