Sunny weather boosts retail sales :: Namibia Internet Gateway cc ::

Articles: Sunny weather boosts retail sales

Posted by admin on Thursday, June 17, 2004 - 04:48 AM

High Street sales have raced ahead as the sunny weather encouraged shoppers to continue spending.
Sales rose 0.8% in May as consumers bought clothing, sportswear and garden furniture, official figures show. On the year, retail sales rose 7.4% - the fastest rate since April 2002 - indicating that higher interest rates have so far not curbed spending. The Bank of England has raised rates by a percentage point since November, in a bid to rein in consumer spending. Outdoor boost But the latest figures from the Office for National Statistics (ONS) are likely to fuel expectations that interest rates will rise again in the near future. May's rise marked a full year of no pull back in monthly sales, something which has not happened since records began in 1986. The ONS said the warm weather in May helped boost sales of clothing, while garden centres and DIY stores reported strong sales of outdoor furniture and plants. Sports shops also reported strong sales, as the warm weather and the build-up to the Euro 2004 football tournament helped lift sportswear sales. 'Unperturbed consumers' Sales of clothing and footwear have now grown by 12.7% over the year, according to the ONS. Howard Archer, an economist at Global Insight, said: "The surge in retail sales in May, despite an interest rate hike early in the month, highlights how unperturbed consumers were by the Bank of England's gradualist approach to raising interest rates." He said: "It fully supports the 25 basis point hike in June and a similar hike in July is a possibility." Meanwhile, the three-month retail sales rate - which is seen a better measure of High Street trends - was also strong, up 1.7% compared with the previous three months, the ONS said.

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