British retail sales growth picked up slightly in November, a survey showed on today. The British Retail Consortium said the value of sales last month rose 1.2 per cent on the year.
This followed a 1 per cent gain in October. Total sales, which include new floorspace, were up 3.1 per cent on the year in November, up from a 3 per cent annual rise.
By themselves, the figures are unlikely to settle the debate over whether interest rates will come down from 5.75 per cent this week as Bank of England policymakers try to balance the prospect of slowing economic growth against rising inflationary pressures.
Still, leading British retailer Tesco urged the central bank today to act early to shore up demand. "Our firm view is that we should be seeing a move down in interest rates sooner rather than later," Tesco Finance Director Andrew Higginson said.
He said inflation at the firm's UK stores was running at just 0.8 per cent.
The BRC said sales growth was skewed toward the end of the month as a result of discounting. A Confederation of British Industry survey out last week, however, reported stronger sales growth alongside a steep rise in prices.
"Womenswear has had a particularly disappointing month, but there were some positive signs in the last week of November," said Helen Dickinson, head of retail at KPMG.