Good news on retail sales, but economy remains unbalanced
17 December 2015
• Retail sales volumes in November 2015 were up 1.7% on the month, and up 5.0% on the year
• Average store prices fell by 3.3% in November 2015 compared with November 2014
Commenting on the Retail Sales Figures for November 2015, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“After a disappointing fall in October, retail sales rebounded much more strongly than predicted in November. At 5.0%, the annual growth in sales is considerably greater than the pace of expansion in the economy as a whole.
“While this good news will reinforce the pre-Christmas cheer, it also highlights the unbalanced nature of our recovery, which continues to rely excessively on domestic demand and on services.
“Our external deficit is still unacceptably large, and while strong consumer spending and services remain vital to our economy, it is important to achieve greater balance – in particular by closing our trade deficit.”