Christmas sales rise
24/01/2012
According to the Office for National Statistics, the country's retail sector saw the strongest final-quarter increase in retail sales in eight years, as volumes rose by 1.1% from Q3 to Q4. Shoppers were lured by hefty discounting, but also the retailers themselves benefited from an extra trading day compared with 2010. Comparing December 2010 with December 2011, sales rose by an impressive 2.6%, which should come as some light relief to George Osborne who has been preparing for the upcoming GDP data due out on Wednesday. However, sentiment was quickly dampened by a raft of economists keen to emphasise the dismal weather experienced in 2010 which would have flattered annual comparisons. This point, when added to news that pay increases are averaging just 1.9% and unemployment is rising, means there is little to suggest this upward curve can continue.
