Analysis: The retail boom will be "ephemeral".

Strong growth in sales to an avalanche of trendy including Burberry, Ted Baker and French Connection high-street retailers this week offered light at the end of the tunnel for the recession-hit retail market.

Tuesday home power fashion Burberry reported increased net within six months of September, while the society carried out in accordance with forecasts for the period of 15 weeks novembre.Le Wednesday, Ted Baker said French connection has reported a 20 7pc 50pc increase sales for the three month of November.

Official figures shown today on retail sales picked up in October by 0 5pc, which suggests that the beleaguered retail sector can finally turn the corner of two months of declining sales.

Tats not last very long, however, détail.Randonnée VAT next year, retail experts increased assurance and large-scale reductions in spending public sector slow which is positive for the sector news inevitably of short durations, said economists.

Richard Lim, an economist at the British consortium of retail, said: "I would not describe today as sales figures"turning the corner".we are waiting to see a relatively slow growth running Christmas."

Mr. Lim said in December last year, retail sales figures have increased by 0 5pc 6pc.Croissance witnessed in October this year "has a long way to go" entered corresponds to a robust performance, he said.

Figures retail today - which showed sales fell by 0 1pc-on-year, showed only "slow growth"in October compared with the previous month, said Mr. Lim".

His views were taken over by Howard Archer, Chief Economist at his insight.Mr. Archer said: "0 5pc-on-month increase represents a pick decent but spectacular places in the volumes of retail in October.

Economists are predicting retail sales will benefit "to a limited extent" in the final weeks of this year consumers bring spending forward in advance of the increase in VAT from January to 20pc.

However, Jonathan Loynes, Economist at the economic capital, said whip retail blow had already stopped: "VAT hike could make certain forward… expenses although things are slow again now, and we squeeze this huge tax happening," he said.

Mr. Archer said: "the concern remains that consumers will be curb their spending to the severe winds contraires.Cela limit clear overall economic growth."

"Consumer confidence is currently low, while the budget reduction will be more jobs in the public sector and the pockets of consumers, said Mr. Archer."Households already facing high unemployment, muted earnings growth and debt élevé.Au levels above this weakness in the housing market is likely to have a dampening effect on consumer spending.?

Future uncertainty will be effect not only more niche as Ted Baker, economists said, but all brands of high-street retailers.

Week last New Look reported like-for-like sales were 4 5pc to the United Kingdom within 26 weeks of September 25, although sales abroad increased by 2.5pc.Toutefois, the company has warned growth would remain subdued.

In an interview with The Daily Telegraph, Carl McPhail, CEO, new look, said: "" we very careful venir.Vous year amounts have changes in VAT en.Il has been a difficult year for us, but we have focused on what we are trying to reach. ""

He rejected the prospect of a double-recession, but consumer spending childcaring responsibilities would be affected by mortgage costs, unemployment and an increase in clothing prix.Prix are 5 - 8pc on an increase in the cost of cotton, he said.


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