LONDON: Retail sales are “bounding ahead”, with growth accelerating strongly in the year to May, the CBI has said.
The employers’ organisation said growth in the volume of retail sales and orders exceeded expectations.
Sixty percent of firms said volumes were up on a year ago, while 9% said they were down, giving a positive balance of 51%.
And expectations for the year to June were even more optimistic, its survey of 134 businesses found.
“Low inflation, which we expect to remain below 1% for the rest of the year, has given household incomes a much-needed boost and greater spending power,” said Rain Newton-Smith, the CBI’s director of economics.
“Overall, the outlook is bright for firms on the High Street, but challenges still remain, especially for food retailers, who are still feeling the heat of stiff price competition from new entrants to the sector.
“And investment plans have also taken a hit.”
Retailers expect sales volumes to grow again in the year to June, with 63% expecting them to rise and 4% to fall, the CBI said.
