UK retail sales grow at slowest pace in nine months

British retail sales grew at the slowest rate in nine months in November, according to a survey which possibly reflected the impact of mild weather on clothes shopping but also added to signs of a slowing in the economy.

The sales balance of the Confederation of British Industry's distributive trades survey unexpectedly dropped to +7, weakening for a second month in a row.

Economists in a Reuters poll had expected a rise in the retail sales balance to +25 from +19 in October.

The survey is in keeping with official data which last week showed retail sales falling by more than expected in October, hurt by the biggest drop in food store sales since May 2014.

"Retailers will naturally be disappointed by the unexpected slowing in sales growth in November, which may be related to the mild start to the autumn," Rain Newton-Smith, the CBI's director of economics, said.

"Nevertheless, it’s encouraging that retailers have been boosting employment," she said. "Ongoing improvements in wages combined with low inflation should continue to support household spending."

Britons have seen their spending power improve over the past year thanks to a pick-up in earnings while inflation is hovering around zero and interest rates are still at their record lows.

However, the Bank of England, which is considering when to raise interest rates for the first time since 2007, has noted that wage growth remains below its levels before the financial crisis.