2014.07.2406:50:53UTC+00CBI shows rebound for UK retail sales

A positive result in a monthly survey of retailers has shown that UK consumers are once again beginning to spend.

According to the results of a poll conducted by employers’ group CBI, 46% of retailers in the region enjoyed higher sales in July with only 25% saying the opposite. The positive balance of 21% far exceeds the level in June of 4%. Official statistics of sales volumes in June sparked concern in the stability of the UK’s recovery when it went below market expectations. The Office for National Statistics will release the official numbers for that period this week on Thursday which economists expect will show a slight gain of 0.3%.

Additionally, CBI panel chair Barry Williams pointed to the 36% who expect sales to advance in the following month as a sign of retailers stocking up for greater demand. Williams said that, “Almost all sectors saw growth, with grocers and clothing stores telling us they performed particularly well as people bought barbecue supplies and summer outfits.” Capital Economics economist Paul Hollingsworth predicted that the momentum in spending is likely to last in the short term based on the forward looking survey.

CBI’s survey covered 133 British businesses which accounted for one third of all employees working under the retail sector.

The results were complemented by data from the British Bankers’ Association which placed June’s mortgage approvals at its highest in three months. According to BBA chief economist, Richard Woolhouse, the rise in demand for loans could indicate the growing confidence UK consumers have in their economy.