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Retail sales lifted by royal wedding and warm weather | Retail sales lifted by royal wedding and warm weather |
(about 3 hours later) | |
UK retail sales rose by more than expected in April, boosted by the extra public holiday for the royal wedding, and the warm weather. | UK retail sales rose by more than expected in April, boosted by the extra public holiday for the royal wedding, and the warm weather. |
Sales last month were 1.1% higher than March, said the Office for National Statistics. Demand rose most for clothing, footwear and food products. | Sales last month were 1.1% higher than March, said the Office for National Statistics. Demand rose most for clothing, footwear and food products. |
It was the biggest rise in retail sales for April since 2002. | It was the biggest rise in retail sales for April since 2002. |
But economists warn the big rise in sales is likely to be a one-off, and that consumer spending remains muted. | But economists warn the big rise in sales is likely to be a one-off, and that consumer spending remains muted. |
Weaker May? | Weaker May? |
Analysts were prepared for the extra public holiday to give retail sales a boost last month, but expected them to rise by only 0.8%. | Analysts were prepared for the extra public holiday to give retail sales a boost last month, but expected them to rise by only 0.8%. |
George Buckley of Deutsche Bank said: "On the face of it they are stronger numbers. It's looking a little better, but I suspect we will get some pay-back in May." | George Buckley of Deutsche Bank said: "On the face of it they are stronger numbers. It's looking a little better, but I suspect we will get some pay-back in May." |
April was the warmest on record in the UK, and this appears to have lifted sales of clothing and footwear, which rose by 3.2% as people bought summer items. Food sales were up 2.2%. | April was the warmest on record in the UK, and this appears to have lifted sales of clothing and footwear, which rose by 3.2% as people bought summer items. Food sales were up 2.2%. |
Howard Archer, chief UK and European economist at IHS Global Insight, also said the April figures should be treated with caution. | Howard Archer, chief UK and European economist at IHS Global Insight, also said the April figures should be treated with caution. |
"While welcome, we strongly doubt that the 1.1% jump in retail sales volumes in April is a sign that the consumer is roaring back to life," he said. | "While welcome, we strongly doubt that the 1.1% jump in retail sales volumes in April is a sign that the consumer is roaring back to life," he said. |
"Rather, what it suggests is that pressurised consumers need a particularly favourable set of circumstances to part with their cash." | "Rather, what it suggests is that pressurised consumers need a particularly favourable set of circumstances to part with their cash." |
Last week, the British Retail Consortium (BRC) also said that the warm weather and extra public holiday had boosted sales in April, which it reported had risen 5.2% on a like-for-like basis. | Last week, the British Retail Consortium (BRC) also said that the warm weather and extra public holiday had boosted sales in April, which it reported had risen 5.2% on a like-for-like basis. |
The BRC said champagne and garden furniture were among the items most in demand as the nation celebrated the royal wedding and enjoyed the sunshine. | The BRC said champagne and garden furniture were among the items most in demand as the nation celebrated the royal wedding and enjoyed the sunshine. |
The British Chambers of Commerce (BCC) said the latest official retail figures were "encouraging". | The British Chambers of Commerce (BCC) said the latest official retail figures were "encouraging". |
BCC chief economist David Kern added: "The strong retail sales figures for April strengthen hopes that the economy has continued to grow in the second quarter of the year." | BCC chief economist David Kern added: "The strong retail sales figures for April strengthen hopes that the economy has continued to grow in the second quarter of the year." |
A separate report by the CBI business organisation said that growth in British factory orders had accelerated more than expected in May. | A separate report by the CBI business organisation said that growth in British factory orders had accelerated more than expected in May. |
The CBI's monthly industrial trends survey also found that the level of inflation faced by factories had eased to its lowest level since December of last year. | The CBI's monthly industrial trends survey also found that the level of inflation faced by factories had eased to its lowest level since December of last year. |
However, the latest figures from the UK car industry show that it has been affected by a reduction in the supply of parts caused by the earthquake and tsunami in Japan. | |
The Society of Motor Manufacturers and Traders said production in April was 7% lower than a year earlier. |