Jubilee gives High St sales boost
A Diamond Jubilee boost saw retail sales grow at the fastest pace in 18 months in June, business group the CBI has said.A balance of 42% of retailers reported sales volumes up on a year ago in the first two weeks of June, the highest reading since December 2010, the CBI said.
The survey period covered the Queen's Diamond Jubilee, which saw an additional bank holiday, as consumers splashed out on extra food and drink for the celebrations.
Judith McKenna, chair of the CBI distributive trades panel, said: "The Jubilee provided a much-needed boost to our high streets with many families and communities making the most of the Bank Holiday and coming together to celebrate."
The figures are positive for the wider economy as the retail industry makes a significant contribution to the powerhouse service sector, which makes up 75% of gross domestic product (GDP).
The economy fell into a technical recession in the first three months of the year as GDP shrank 0.3%, following a 0.3% contraction in the final quarter of 2011.
Chris Williamson, chief economist at financial information services firm Markit, said: "The message from the official and survey data combined is that retail sales may have risen by at least 1% in the second quarter, which should have provided a welcome boost to the flagging economy and may even help the country lift out of its double-dip recession."
Figures from the Office for National Statistics (ONS) for May showed retail sales volumes increasing 1.4%, driven by heavy discounting, particularly in department stores.
The majority of retailers reported better-than-expected growth in orders in June, the CBI said, with the survey balance again the highest since December 2010.
However, the majority of retailers still considered the volume of sales to be below average for the time of year.
The economy fell into a technical recession in the first three months of the year as GDP shrank 0.3%, following a 0.3% contraction in the final quarter of 2011.
Chris Williamson, chief economist at financial information services firm Markit, said: "The message from the official and survey data combined is that retail sales may have risen by at least 1% in the second quarter, which should have provided a welcome boost to the flagging economy and may even help the country lift out of its double-dip recession."
Figures from the Office for National Statistics (ONS) for May showed retail sales volumes increasing 1.4%, driven by heavy discounting, particularly in department stores.
The majority of retailers reported better-than-expected growth in orders in June, the CBI said, with the survey balance again the highest since December 2010.
However, the majority of retailers still considered the volume of sales to be below average for the time of year.
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