City sceptical on retail sales figures

analysts were expecting the official data to confirm the dismal picture reported by the surveys conducted by the CBI and the British Retail Consortium. But the Office for National Statistics said that activity had been boosted by canny shoppers truffling around for bargains and by the strength of particular items such as mobile phones and computer games. Analysts pointed out, however, that the monthly pattern of sales has been highly erratic recently. In May, there was a record 3.9% increase in sales volumes (revised up from the originally reported 3.6% gain) and this was followed by a record 4.3% drop in June (revised down from a 3.9% decrease). Little wonder then that Vicky Redwood, of Capital Economics, said July's increase should be taken "with a pinch of salt". The Bank of England appears to be equally sceptical.... [read full story]