Good news for the retail sector?
According to the Confederation of British Industry (CBI), retail sales volumes rose at its fastest rate since September 2015 in the year to December.
However, CBI expects the growth to slow down next year as a result of the fall in the pound that came after Brexit.
The weaker pound makes imports much more expensive and also pushes up inflation.
Clothing saw a huge growth in sales volumes whilst grocers had the best result since January.
The latest data found by CBI covers the last week of November and the first two weeks of December. It also included Black Friday where many retailers discount its goods.
Hardware, DIY and internet retailers also reported strong growth, wholesalers saw the biggest rise in volumes for nearly 18 months.
Ben Jones, CBI principal economist, said: “It’s encouraging to see retailers reporting another month of healthy sales growth leading up to the festive season, which rounds off a fairly solid quarter,”
“While we still expect to see decent growth in the near term, the pressures on retail activity are likely to increase during 2017, as the impact of sterling’s depreciation feeds through.”
“With higher inflation beginning to weigh on households’ purchasing power, consumption patterns are likely to shift, creating winners and losers across the retail landscape.”