26/04/2011
Strong food and non-store sales have boosted retail sales - to the surprise of many forecasters, according to BusinessandLeadership.com.
Sales volumes rose 0.2 per cent compared with a month earlier, according to the Office for National Statistics (ONS).
Year-on-year, retail sales were 1.3 per cent. Economists had forecast a month-on-month fall of 0.5 per cent and an annual rise of just 0.9 per cent, prompting positive news for the British financial system.
The good weather helped sales of items of items like climbing frames and other outside equipment.
Furthermore, releases of new gadgets like Apple's iPad2 and the handheld Nintendo 3DS helped boost technology sales across the sector.
As well as convincing economists that consumer demand is stabilising, the added sales to businesses could instigate more growth. In fact, sales finance could be utilised by businesses who supply to retailers, in order to help further develop growth through releasing funds from unpaid invoices.
According to BBC News, Sterling jumped half a cent against the dollar to $1.654 after the data was released; as currency traders priced in a higher probability that the Bank of England will raise rates over the summer.
Howard Archer, researcher at IHS Global Insight, played down any worries consumers previously had, stating: "The consumer is not quite as flat on his back as had been feared."
Ashley Curtis