Retailers expect growth to continue after strong start to May
More than half of retailers expect sales volumes to grow next month after stronger than expected growth in the first half of May.
A balance of 60% of respondents said sales volumes were higher than a year ago, according to the CBI Distributive Trades Survey. This compares with +12% in April and ahead of expectations of +40%.
Sales were above average for the time of year by its highest level since April 2007 and orders placed with suppliers were at the highest level since December 2010.
Almost two thirds (63%) of retailers expect sales to grow again in June, with just 4% anticipating a fall.
‘Retailers will be encouraged to see growth in sales and orders on the high street bounding ahead. 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. Overall the outlook is bright for firms on the high street, but challenges still remain, says Rain Newton-Smith, CBI director of economics.