Consumer spending over the Easter period boosted retail sales in April, according to the latest survey by the Confederation of British Industry (CBI).
The CBI said the statistics marked a return of the buoyant sales levels seen earlier this year, with April takings increasing to an above-average level for the time of year.
Just over half of businesses said sales were up on a year ago while 21 per cent said they were down and this balance of plus 30 per cent compared favourably with plus 17 per cent in March and plus 26 per cent in February.
And, even though underlying sales growth edges down slightly last month, the CBI said it was expected to pick up over the coming month.
Looking forward, the survey found retailers were forecasting further improvement in sales this month, expecting well above-average sales for the time of year and this positive outlook was reflected in April when orders placed upon suppliers reached a two-year high.
The survey also revealed wholesalers’ sales growth in April reached the strongest level for almost two years, following a dip in sales in March and firms now rate sales as well above average for the time of year.
John Longworth, chairman of the CBI’s Distributive Trades Survey Panel, said retail sales had been lifted by Easter shopping and consumer spending underpinned by rising house prices and falling unemployment.
“With little sign of a slowdown in high street activity, the economy continues to grow well – if this continues interest rates will have to increase to a more neutral level later this year, but the Bank of England must be careful not to stifle the economic recovery by abandoning its well signalled, gradualist approach to consumer rate rises.
“Uncertainty about how debt levels may hit future consumer conduct will concern retailers while manufacturers remain anxious about the level of sterling and the fragility of exports,” he said.
