High street sales between June 23rd and July 14th were ahead of retailers’ expectations, new research suggests.
The latest Confederation of British Industry (CBI) Distributive Trades Survey shows that 51 per cent of retailers said sales during this period were better than at the same time last year.
With just 18 per cent of businesses in the industry saying trading dropped year-on-year, the +33 per cent balance was considerably better than analysts had predicted.
The CBI data also shows that trading has been improving month by month, as the balance of retailers reporting better year-on-year sales stood at -18 per cent and -5 per cent in May and June respectively.
Sub sectors experiencing the strongest growth in July were grocers, clothing and footwear & leather.
Lai Wah Co, CBI Head of Economic Analysis, attributed the positive high street sales of clothing to annual summer discounts and the warm weather, while the World Cup boosted sales of food, drink and new televisions.
“Retailers are optimistic that strong sales growth will continue next month, which is promising,” she added. “We still expect the recovery in overall consumer spending to be fairly restrained, however, given concerns about the impact of public spending cuts and weak prospects for real take-home pay in the coming year.”