Unexpected rise in November UK retail sales

Last month in the build up to Christmas, retail sales steadily increased according to the Office for National Statistics as sales have jumped by 1.5 percent compared to 2007.

Recent surveys had revealed just how weak trading has been, though the volume of sales has increased by 0.3 percent in an unexpected boost for the high street.

The main gains in monthly sales were experienced in household goods which were up by 3.9 percent, with food sales up by 0.2 percent although there is seemingly no sign of cheaper food prices.

It has been difficult for analysts to understand the trend as the gain in retail sales does not marry with the low consumer confidence, nor the data produced by the CBI surveys, as even an early run up to Christmas does not explain the gain.

It is more likely down to the fact that with the fall in VAT and other high profile high street chains making huge cuts and promotions, it is more likely that this has tempted buyers to splash out.

This boost will be a welcome sight to some retailers, although it is a very testing time as the demise of high street favourite Woolworths has shown it is still a very competitive market.