29/04/2003

Spring warms UK retails sales

Figures from the Office of National Statistics revealed a 0.6% increase in retail sales during March this year.

The latest seasonally adjusted figures revealed that sales had increased by 4.3% on the March 2002 figure.

The good weather throughout March tempted shoppers out onto the high streets to snap up commodities such as food drink and tobacco - up 4%, and household goods – up 3%.

This helped maintain the weekly value of retail sales in March averaged £4,280 million, a figure 2.7% higher than that of the corresponding period in the previous year. At current prices the first quarter of the year saw sales grow by 3.1%.

Though in terms of volume the seasonally adjusted figures showed a 0.1% increase in food store sales in the first three months of the year, and the sales in non-food outlets was up 0.5%.

The rise confounded the predictions of many leading economists whose most optimistic forecasts had been less than 0.4%.

The increase in retail sales has lessened expectations of an interest rate cut by the Bank of England’s Monetary Policy Committee who meet next week to decide if there should be any change to the current rate.

(SP)

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