A View From Middle England - Conservative with a slight libertarian touch - For Christian charity and traditional belief - Free Enterprise NOT Covert Corporatism

Monday, May 30, 2011

Royal Wedding boosted retail sales

Waving the flag for higher retail sales
The British Chambers of Commerce predict a gloomy year ahead for the economy. That's going to help retailers, I'm sure. Now there's news that the Royal Wedding last month helped boost retail sales. In April they were 1.1% higher than March, according to the Office for National Statistics. Demand rose most for clothing, footwear and food products. All the things you need for a royal marriage celebration. It was the biggest rise in retail sales for April since 2002.

So it's all really simple when it comes to retailing. If people feel good, they will buy. If they feel wretched they will be disinclined to do so. Howard Archer, chief UK and European economist at IHS Global Insight, says 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. "Rather, what it suggests is that pressurised consumers need a particularly favourable set of circumstances to part with their cash."

So bring on the favourable set of circumstances!

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