UK sales weak despite Easter boost
Underlying growth flat says CBI
May 1 2003
UK retailers saw a sales boost from the late Easter and good weather in April, but the rise masked the fact that underlying sales growth has leveled off.
The CBI monthly survey showed year-on-year sales growth in April reviving to the highest level since November.
Despite an upturn in late March and April, the three month average, seen as a better measure of the underlying trend, shows sales are broadly the same as a year ago. Retailers only consider sales as average for the time of year and very modest sales growth is expected in May.
In March stocks were at their lowest level for almost two years and orders to suppliers fell. Demand increased in the majority of retail sectors, with shops selling clothing, footwear and leather goods reporting the biggest increases. The sharpest falls in demand were among specialist food retailers and chemists.
Alastair Eperon, chairman of the CBI’s distributive trades panel and a director of Boots, said: “Sales growth for the year to April appears to be much better than in the year to March. Clearly the warm weather boosted some sectors from late March onwards, after the end of our previous survey, and the movement of Easter in the calendar has had an influence.
“In 2002 Easter fell in March so last month’s year-on-year comparisons were depressed. With a later Easter this year April’s figures have benefitted but that mustn’t obscure the underlying slowdown. Through most of 2002 the economy was supported by strong consumer spending. Now, when month to month swings are taken out, retail sales growth has halted.
“This is further evidence that the stimulus of an interest rate cut is needed in parts of the economy beyond just manufacturing.”
