More confusion with UK high street sales
A survey by the CBI shows that 46% of retailers in the UK confirmed that business has increased in February after a very difficult January. This is the latest in a long line of confusing and difficult to understand figures regarding the UK economy which appears to be changing on a monthly basis. While we await the official retail sales figures, it is highly likely we will see a marked increase in sales compared to January and probably compared to February last year.
The CBI survey takes into account both positive and negative comments from last month and with 46% of those surveyed confirming business has improved and only 23% suggesting their business levels were down, the net position is +23 points. This is the highest level since May 2007 and bodes well for the short-term outlook for the UK retail sector. It will be interesting to see the exact figures for February 2010 and compare these to the January data which was very disappointing to say the least.
While the CBI survey, and the prospect of increased sales when official retail numbers are released, has been well received by investors it does make forecasting the direction of the UK economy more difficult than ever before. Investors are looking for medium to long-term indications about the direction of the UK economy and prefer not to base any investment decisions on short-term fluctuations.
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