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UK retailers turn positive on sales hopes after bleak winter
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LONDON (Reuters) – British retailers reported their first positive sales expectations in seven months, according to a survey published by the Confederation of British Industry on Monday, adding to other recent signs of recovery in the economy.
LONDON (Reuters) – British retailers reported their first positive sales expectations in seven months, according to a survey published by the Confederation of British Industry on Monday, adding to other recent signs of recovery in the economy.
The CBI’s (CBI) expected sales balance for April increased to +9 from -18 in March. Apart from September’s reading of +31, the gauge of sales expectations has been negative in every month since May of last year.
Sales in March were reported roughly flat at +1, little changed from February’s reading of +2. A Reuters poll of economists had pointed to a reading of -6.
Consumers have been hit hard by an inflation rate that remains about 10%, plus rising interest rates and the prospect of higher taxes.
“It’s encouraging that activity in the retail sector showed signs of stabilising after a challenging winter,” CBI Principal Economist Martin Sartorius said.
“This resilience has helped inspire some spring shoots of optimism, with firms expecting an increase in sales for the first time since last September.”
Sartorius said finance minister Jeremy Hunt’s decision to increase support for occupational health and expand childcare provision would help address some of the labour shortages that retailers face but did not go far enough.
“In particular, more will need to be done to tackle retailers’ ongoing skills gaps,” he said
(Reporting by William Schomberg; Editing by William James)
Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. It is usually measured as an annual percentage increase.
Sales expectations refer to the anticipated sales performance of a business or sector over a specific period. They are often based on market analysis, consumer trends, and economic indicators.
Consumer perception is how customers view and interpret a brand, product, or service based on their experiences, beliefs, and feelings. It significantly influences purchasing decisions.
The Confederation of British Industry (CBI) is a UK business organization that represents the interests of businesses. It provides insights, research, and advocacy to support economic growth and business development.
Economic recovery is the phase following a recession where the economy begins to grow again. It is characterized by increased consumer spending, business investment, and improvements in employment rates.
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