Retail figures surprise fuels recovery hopes
HOPES that the economy is beginning to recover were boosted by upbeat retail sales figures published yesterday, although shoppers remained cautious of splashing out on big-ticket items.
The Confederation of British Industry’s (CBI) distributive trades story showed 34 per cent of retailers reported increasing sales volumes in February while 36 per cent suffered a decline, a sharp improvement on January’s data.
The survey follows fourth-quarter GDP data which showed the first quarterly rise in consumer spending – which accounts for over 60 per cent of all expenditure in Britain – in 18 months, offering the economy a base to bounce back from a dip in the last three months of 2011.
“Consumers have more life in them than previously thought and have been quite sprightly so far in 2012,” IHS Global Insight economist Howard Archer said on the CBI poll.
Food retailers reported their strongest sales growth since last May, but sales of durable household goods continued to fall sharply and clothing sales declined at their fastest pace in almost three years.