British retail sales surged at their fastest annual rate in more than a decade in November, as US-style ‘Black Friday’ discounts drove record sales growth at electrical and department stores.
The figures suggest strong economic growth and a recent fall in prices for essentials such as food and fuel are finally starting to translate into higher morale among some households – a good sign for the UK’s ruling Conservatives before May’s national election, where cost of living issues are centre stage.
Retail sales volumes 1.6 per cent on the month to show 6.4 per cent growth on the year, the fastest annual growth May 2004, the Office for National Statistics said yesterday.
Economists had expected retail sales to rise 0.3 per cent on the month after a similar increase in November, and for sales to be 4.4 per cent higher on the year.
In recent years, relatively high inflation and stagnant wages have eaten into British households’ disposable income. But now falling prices for food and fuel are boosting the amount of goods that consumers can afford to buy, and wages have finally started to grow faster than inflation.
The Bank of England continues to expect consumer spending to be an engine for growth, after powering what looks set this year to be the fastest expansion in overall economic output in more than a decade.