March 30, 2007 | posted by Michael Baxter in IABN |

The high street has had its best month since 2004, suggests data released yesterday by the CBI.

The CBI distributive trades survey is produced when retailers say whether sales are up or down on the same month the year before. The percentage balance forms the CBI index, which in March rose to 32, up from 19 the previous month. The last time the index was so high was December 2004.

We know what you are thinking. Sales were so bad last year, (the index was -16), that of course a year on year comparison would be good. But according to the CBI, the three-month moving average, which smooths out monthly peaks and troughs, was #43;27%, its highest since July 2004 (#43;39%).

Retailers linked to the housing sector did especially well - a balance of #43;53 percent of hardware, china and DIY retailers said volumes were up compared to a year ago. Also doing well were footwear and leather, but booksellers and stationers reported a slight fall in year-on-year sales. Motor traders also reported a fall in sales

John Longworth, executive director of Asda and chairman of the CBI’s DTS Panel, said: “Looking past the headline figure, it seems the housing market is the driving force behind much of the spending. There was strong growth in demand for hardware, DIY products and household goods, while furniture and carpets sales are also up on a year ago.”

Actually, it is a little strange. The rate of interest keeps going up, and yet sales seem unabated. The Bank of England will be making its next rate of interest decision soon, and a growing number of economists are saying this could be the time when rates go up again.

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