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UK retailers buoyed by best trading conditions in a decade | UK retailers buoyed by best trading conditions in a decade |
(about 2 hours later) | |
Britain's retailers are enjoying their best trading conditions for a decade after low interest rates, rising confidence, a booming housing market and a late Easter boosted spending in the shops and online last month. | Britain's retailers are enjoying their best trading conditions for a decade after low interest rates, rising confidence, a booming housing market and a late Easter boosted spending in the shops and online last month. |
Figures from the Office for National Statistics showed that the volume of sales was 1.3% higher in April than in March and 6.9% up on April 2013. | Figures from the Office for National Statistics showed that the volume of sales was 1.3% higher in April than in March and 6.9% up on April 2013. |
Sales in the latest quarter – considered a better guide to the underlying trend than one month's figures – were 1.8% up on the previous three months. Both the annual and the quarterly increases were the highest since the spring of 2004. | Sales in the latest quarter – considered a better guide to the underlying trend than one month's figures – were 1.8% up on the previous three months. Both the annual and the quarterly increases were the highest since the spring of 2004. |
The ONS said there had been an across-the-board increase in sales last month, with food stores showing their strongest annual growth rates in 12 years. Supermarket price wars are believed to have been a factor in the 6.3% rise in sales in the year to April. | |
After a weak March, spending online bounced back in April, the ONS, said, rising by 2.6% on the month to a level 13.3% higher than in April 2013. | After a weak March, spending online bounced back in April, the ONS, said, rising by 2.6% on the month to a level 13.3% higher than in April 2013. |
The boost in consumer spending came despite a continued squeeze on real incomes caused by wages struggling to keep pace with prices. Howard Archer, UK economist with IHS Global Insight, said: "Retail sales were mightily impressive in April, even allowing for a major boost coming from the later Easter this year. This bodes very well for GDP growth in the second quarter." | The boost in consumer spending came despite a continued squeeze on real incomes caused by wages struggling to keep pace with prices. Howard Archer, UK economist with IHS Global Insight, said: "Retail sales were mightily impressive in April, even allowing for a major boost coming from the later Easter this year. This bodes very well for GDP growth in the second quarter." |
Archer said he expected earnings to start to outstrip prices over the next few months. "The strong housing market is also supportive to retail sales," he added. | Archer said he expected earnings to start to outstrip prices over the next few months. "The strong housing market is also supportive to retail sales," he added. |
Jeremy Cook, chief economist at the currency company, World First, said: "Q2 GDP has definitely started strongly and could easily breach the 1.0% level for the quarter for the first time since Q2 2010." |
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