Hot weather drives sales growth to fastest rate in nearly a year

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Retailers enjoyed the fastest sales growth in nearly a year last month thanks to the positive impact of the hotter weather.

According to the Confederation of British Industry’s (CBI) monthly survey, 43 per cent of respondents saw sales volumes rise in the year to June.

This marked the fastest sales growth since September last year, with just 10 per cent saying they saw sales decline, making a balance of 32 per cent.

A further 32 per cent of those surveyed said they that expect sales to increase in the year to July, compared with 14 per cent expecting decline, giving a balance of 18 per cent.

Thirty-four per cent of retailers also placed more orders than compared with a year ago, compared to 13 per cent who placed fewer, giving a balance of 20 per cent.

“Higher-than-average temperatures seem to have had a positive impact on shoppers, with retailers benefiting from above-average seasonal sales and improved order volumes growth,” CBI head of economic intelligence Anna Leach said.

A separate study commissioned by the Royal Mail revealed that 39 per cent of SME’s expected to see a sales rise this summer due to the hot weather.

A Royal Mail spokesperson said: “With forecasters predicting a long hot UK summer, retailers are set to capitalise on the good weather this year. It’s encouraging to see that many expect to see an increase in sales this season.”

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