British retailers posted strong growth in sales this month and their outlook for sales and orders improved at an even stronger pace in the year to June, the quarterly Distributive Trades Survey from the Confederation of British Industry showed Tuesday.
A balance of 51 percent said sales increased in May, up from the prior month’s balance of 12 percent and expectations of 40 percent.
Sales were well above average for the time of year, to the greatest extent since April 2007, the survey showed. Retailers expect sales volumes to grow again next month, as the balance rose to 58 percent for June.
The business lobby said expectations for next month are at their highest level for 27 years.
The volume of orders placed upon suppliers improved with the balance rising to 29 percent, its highest rate since December 2010. The score for the next month climbed to 41 percent.
The prospects for retail sales and consumer spending look largely bright, IHS Global Insight Economist Howard Archer said.
There is little to worry about from the dip into mild deflation in April; it should primarily have a beneficial impact on the economy through further boosting consumers’ purchasing power, he noted.
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