Retail sales helped by strong demand for autumn fashions and supermarket price war

The latest survey from the CBI gave an upbeat picture of the high street as the number of retailers who said sales rose in September, compared with those who said they fell, hit a balance of plus 49 per cent, against expectations of plus 35 per cent. It was the report’s highest level since May.

The survey added that the number of retailers who reported sales volumes above average for the time of year was at a balance of plus 35 per cent, the highest since April 2007.

The report said the biggest drivers of retail demand were grocery and clothing sales, with shoppers buoyed by rising wages and low inflation.

Firms said orders to suppliers jumped to a balance of plus 44 per cent, the quickest pace since December 2010, and they are expected to strengthen further next month.

Retailers are also positive over the longer term with a balance of plus 51 per cent saying they expect sales volumes to increase over the coming 12 months.

Rain Newton-Smith, CBI director of economics, said: “As the summer has been drawing to a close, consumers have been out on the high street boosting sales and orders for UK retailers.

“Low inflation and the recovery in wage growth are helping to stimulate consumer demand, but the slowdown in the global economy and tight margins mean retailers won’t get ahead of themselves as we head into autumn.”