LONDON (MNI) – UK retail sales remained in negative territory in
June but retailers expected a return to sales growth in July, according
to the Confederation of British Industry’s May survey.
Retailers saw a balance of -5 on the sales volume balance – up from
-18 in the May survey and better than the expected balance of -15
seen last month.
The expected sales volume of balance for July is +11.
If sales growth does turn positive in July this would be the fourth
positive outturn in 2010. The CBI results have been volatile recently.
Bank of England Agents in their report Wednesday said they believed
that the underlying trend was retail sales growth had held steady in
2010.
The CBI said retailers are more optimistic about prospects for
sales in July in part becuase of the impact of the World Cup.
CBI Chief Economic Adviser Ian McCafferty noted that retailers are
hopeful sales will strengthen next month.
“As the survey predates the emergency budget news that the feared
rise in VAT will not take effect until next January, this may well also
encourage some advance spending over the second half of the year”.
The CBI said High Street sales weakened slightly, particularly in
footwear and leather goods, with grocers and durable household goods
seeing solid growth.
“This may reflect consumers gearing up for the World Cup by
stocking up on food drink and new televisions,” McCafferty said.
The survey took place between May 27 and June 9 and was based on
responses from 65 retailers.
— London newsroom: 00 44 20 7862 7491; email: drobinso@marketnews.com
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