Menu
01/06/2004
CBI report 'undiminished' consumer spending surge
A CBI report on retail sales has found that consumers' appetite for spending is "undiminished".
According to quarterly Distributive Trades Survey, published today, retail sales grew in May at their fastest rate for two years and are expected to be almost as strong this month.
Sixty-five per cent of respondents said sales were up compared with a year ago while 14% said they were down. The balance of plus 51% compares with plus 30% last month and indicates the highest sales growth since April 2002. A balance of plus 46% suggested retailers expect growth to be similarly strong in June, the organisation said.
The survey showed that the underlying trend continuing to pick up and is back up at the level of the last quarterly survey in February – its strongest level since June 2002.
Despite strong sales, and despite previously expecting a modest increase in employment, retailers cut jobs sharply, according to the report. Twenty per cent said they were employing more people in May than a year ago, but 37% said they had reduced jobs. The balance of minus 17% is the sharpest fall since November 1992. Retailers expect the rate of job cutting to slow only slightly in June.
John Longworth, Chairman of the CBI's DTS Panel, said that price promotions and warmer weather had contributed, but rising take-home pay, low unemployment and a strong housing market were the "key drivers of consumers' willingness to spend".
"But competition is strong and retailers have only been able to increase prices slightly. With profit margins squeezed retailers have edged back investment plans and sharply cut jobs," he added.
Every retail sector reported sales higher this May than they were a year ago except confectionary, tobacco and news – which saw sales unchanged.
Retailers are more optimistic that the general business situation will improve over the next three months than they have been for two years. Investment is expected to rise over the next three months but at a slower rate than reported in the previous survey, the CBI said.
The Distributive Trades survey covers 20,000 outlets of firms responsible for 40% of employment in retailing.
(gmcg)
According to quarterly Distributive Trades Survey, published today, retail sales grew in May at their fastest rate for two years and are expected to be almost as strong this month.
Sixty-five per cent of respondents said sales were up compared with a year ago while 14% said they were down. The balance of plus 51% compares with plus 30% last month and indicates the highest sales growth since April 2002. A balance of plus 46% suggested retailers expect growth to be similarly strong in June, the organisation said.
The survey showed that the underlying trend continuing to pick up and is back up at the level of the last quarterly survey in February – its strongest level since June 2002.
Despite strong sales, and despite previously expecting a modest increase in employment, retailers cut jobs sharply, according to the report. Twenty per cent said they were employing more people in May than a year ago, but 37% said they had reduced jobs. The balance of minus 17% is the sharpest fall since November 1992. Retailers expect the rate of job cutting to slow only slightly in June.
John Longworth, Chairman of the CBI's DTS Panel, said that price promotions and warmer weather had contributed, but rising take-home pay, low unemployment and a strong housing market were the "key drivers of consumers' willingness to spend".
"But competition is strong and retailers have only been able to increase prices slightly. With profit margins squeezed retailers have edged back investment plans and sharply cut jobs," he added.
Every retail sector reported sales higher this May than they were a year ago except confectionary, tobacco and news – which saw sales unchanged.
Retailers are more optimistic that the general business situation will improve over the next three months than they have been for two years. Investment is expected to rise over the next three months but at a slower rate than reported in the previous survey, the CBI said.
The Distributive Trades survey covers 20,000 outlets of firms responsible for 40% of employment in retailing.
(gmcg)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
15 November 2024
Electric Shock Report To Launch At NI's Premier Electrical Industry Event
A new report aimed at tackling the widespread underreporting of electric shocks within the electrical industry in Northern Ireland will be launched later this month, as part of the Electrical Training Trust's (ETT) 'Save Our Sparks' campaign.
Electric Shock Report To Launch At NI's Premier Electrical Industry Event
A new report aimed at tackling the widespread underreporting of electric shocks within the electrical industry in Northern Ireland will be launched later this month, as part of the Electrical Training Trust's (ETT) 'Save Our Sparks' campaign.
24 September 2010
Bangor Sainsbury's Development Boosts Jobs
Development work will begin on a major superstore project in Bangor at the beginning of October, creating and securing dozens of construction jobs. The property expert who secured the deal to bring the Sainsbury's supermarket giant to Balloo Retail Park said that it will be a significant boost for the scheme and the local area.
Bangor Sainsbury's Development Boosts Jobs
Development work will begin on a major superstore project in Bangor at the beginning of October, creating and securing dozens of construction jobs. The property expert who secured the deal to bring the Sainsbury's supermarket giant to Balloo Retail Park said that it will be a significant boost for the scheme and the local area.
08 August 2011
Citroën Retail Group In Irish Jobs' Boost
The French Citroën Retail Group will open a new retail premises in Dublin before the end of this year. As well as providing customers with more opportunities to view the Citroën brand, the new dealership will also provide a welcome job boost to the Dublin motor industry.
Citroën Retail Group In Irish Jobs' Boost
The French Citroën Retail Group will open a new retail premises in Dublin before the end of this year. As well as providing customers with more opportunities to view the Citroën brand, the new dealership will also provide a welcome job boost to the Dublin motor industry.
02 November 2004
CBI urge interest rate freeze following under par retail sales
High street spending lifted in October but overall autumn sales have disappointed retailers, according to the CBI's latest monthly survey.
CBI urge interest rate freeze following under par retail sales
High street spending lifted in October but overall autumn sales have disappointed retailers, according to the CBI's latest monthly survey.
16 April 2002
Retail sales register strong growth during March
The British Retail Consortium (BRC) has said that the UK's retail sales recorded their strongest growth in six years during March, according to the latest figures. The BRC said like-for-like sales rose by 7.5 per cent compared to the previous year, while vibrant shopping during the Easter holiday weekend helped sustain the numbers.
Retail sales register strong growth during March
The British Retail Consortium (BRC) has said that the UK's retail sales recorded their strongest growth in six years during March, according to the latest figures. The BRC said like-for-like sales rose by 7.5 per cent compared to the previous year, while vibrant shopping during the Easter holiday weekend helped sustain the numbers.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
