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EDITIONS
 Thursday, 19 December, 2002, 12:49 GMT
Shops hit by spending slowdown
Shop window
Some winter sales have already begun
Christmas spending got off to a slow start on the High Street, according to the latest official figures.

The figures are volatile at this time of year and it is dangerous to draw conclusions from one month's figures

Philip Shaw
Investec economist
In November retail sales increased by 0.1% over the month, the Office for National Statistics (ONS) said.

The annual increase in sales was 4%.

The figures, which were lower than economists had been expecting, probably explain why so many stores are already holding their winter sales and offering heavy discounts.

In October, spending rose strongly as the cold and wet weather persuaded shoppers to buy clothes and footwear.

The ONS has now said October's rise was actually less impressive than originally thought and has revised the figure down from 0.8% to 0.7%.

Volatile figures

In November, the growth in sales was driven mainly by higher spending on food.

The ONS said that non-food stores, selling clothes and footwear, recorded a slide in sales.

It meant that annual growth in clothing and footwear retailers was 3.9%, its lowest for three years.

But economists said that although Christmas trading had begun slowly, consumer spending was still strong.

Philip Shaw, an economist at Investec, said the latest figures fitted in with anecdotal evidence that the Christmas season has got off to a slow start.

But he warned: "The figures are volatile at this time of year and it is dangerous to draw conclusions from one month's figures."

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See also:

09 Dec 02 | Business
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