British retail sales increased at their fastest pace in 18 months in October, and retailers expect a further spurt this month, the Confederation of British Industry(CBHI) said today.
The CBI's latest monthly survey of retail sales showed 56 per cent of retailers reported better trade last month, while 21 per cent said it was down, giving a balance of 35 per cent.
That was the highest since April 2002 and compared with a 17 per cent balance in September. Retailers had expected the balance to rise to 25 per cent.
A positive balance of 37 per cent of retailers said they expected sales to rise this month - the most optimistic since May 2002.
The survey reinforced expectations that the Bank of England will raise interest rates when it meets later this week.
But the CBI warned the Bank of England not to choke off the recovery with interest-rate hikes.