Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Retail Revival: High Street Sales Surge in May

by May 29, 2024
May 29, 2024
Retail Revival: High Street Sales Surge in May

Retail sales experienced their most significant growth in a year and a half this May, indicating a resurgence in consumer activity on the high street amidst improving economic conditions and better weather.

The Confederation of British Industry (CBI) reported that the weighted balance of retail sales rose to 8 per cent in the year to May, a sharp increase from minus 44 per cent in April, marking the strongest performance since December 2022.

This robust retail performance complements other data suggesting the UK economy has continued its growth trajectory after emerging from recession earlier this year. Prime Minister Rishi Sunak has emphasised economic recovery as a central theme of the Conservative Party’s general election campaign.

The latest purchasing managers’ index, a key indicator of economic activity, suggests GDP could grow by 0.3 per cent in the second quarter of the year. Additionally, inflation fell to 2.3 per cent in April from 3.2 per cent, significantly down from a 42-year peak of 11.1 per cent.

The CBI noted that retail sector inflation has slowed to its lowest rate since August 2020, with prices expected to increase only slightly faster next month. This trend indicates that headline CPI inflation could decline further in May.

GfK’s consumer confidence index, a long-standing measure of public sentiment, has reached its highest level in over two years.

Alpesh Paleja, the CBI’s lead economist, stated: “May’s increase in retail sales adds to the swathe of data pointing to an improvement in activity over the near-term. Falling inflation and continuing real wage growth will contribute to a healthier consumer outlook, in turn supporting the retail sector further.”

The retail boost in May is partly attributed to calmer weather following April’s heavy rainfall. However, the Office for National Statistics recently reported a 2.3 per cent contraction in April sales, the steepest drop this year, which Ruth Gregory, deputy chief UK economist at Capital Economics, suggested was an anomaly.

Despite the positive sales figures, the CBI forecasted a slight contraction in sales for the upcoming month. Employment in the retail sector also fell sharply in May and is expected to decline further.

Paleja cautioned: “Retailers are restrained about their business situation over the coming quarter. Headline sales are expected to fall moderately next month, and it’s concerning that retailers’ investment intentions have deteriorated noticeably.”

Economists remain hopeful that retail sales will improve as living standards recover, with wages outpacing inflation for nearly a year. However, the current parliament is set to be the first on record where average household living standards have declined. GDP per capita has been sluggish over the past two years, and household finances are still rebounding from the cost-of-living crisis.

Paleja concluded: “All parties should use this general election campaign to embrace policies that will embed sustainable growth, foster the investment we need to develop a labour market that delivers higher living standards, and accelerate our transition to net zero.”

Labour holds a 20-point lead over the Conservatives in the polls, with the general election scheduled for 4th July.

Read more:
Retail Revival: High Street Sales Surge in May

0
FacebookTwitterGoogle +Pinterest
previous post
Royal Mail on Brink of £3.5bn Takeover by Czech Billionaire
next post
Sunak Pledges to Replace ‘Rip-off’ Degrees with Apprenticeships

You may also like

Aston Martin in discussions with bankers over debt...

February 13, 2024

Britishvolt staves off collapse with funding boost and...

November 2, 2022

Eurostar Amsterdam-to-London services to be suspended for six...

November 27, 2023

Bank of England expected to make statement as...

September 26, 2022

Losses balloon for Royal Mail as strike action...

November 17, 2022

Entrepreneur turned away from London Tech Week for...

June 11, 2025

Rachel Reeves champions benefits of China trade as...

July 19, 2024

Sunak to hold talks about food inflation with...

May 5, 2023

X begins charging new users $1 a year

October 18, 2023

Chancellor Jeremy Hunt delays 1p income tax cut

October 15, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump to announce $100bn Apple investment pledge to boost US manufacturing

      August 6, 2025
    • SCOOP: Trump admin, OpenAI partner to unleash artificial intelligence on federal government

      August 6, 2025
    • The Tax Bill’s Success Will Turn on Regulatory Implementation

      August 6, 2025
    • Why I Helped Organize the Department of Energy’s Climate Report

      August 6, 2025
    • Anand Lalaji on Building Trust in Healthcare Leadership

      August 6, 2025
    • Nine Examples of Waste in the New Markets Tax Credit Program

      August 6, 2025

    Categories

    • Business (8,690)
    • Investing (2,178)
    • Politics (16,319)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved