Retail Sales Improved Showing Signs of a Tentative Economic Recovery
There is good news in context of UK economy that an improvement is noticed in retail sales in the month of February much more than expectation. There is also consumers' pessimism eased again which is indicating a sign of a tentative recovery in the economy, though the news was very mixed from different sector to sector.
On Tuesday, the Confederation of British Industry said that its monthly survey's reported sales balance in January rose to -2 from -22, beating by a wide margin of economists' forecasts for -19. The expected sales balance for March from -10 for February also climbed to +2. The European Commission also showed a separate survey that British consumer morale in February rose to a six-month high. The survey follows fourth-quarter GDP data which showed the first quarterly rise in consumer spending which accounts for over 60 percent of all expenditure in Britain in 1-1/2 years and offering the Britain's economy a base to bounce back from a dip in the last three months of 2011.
Moreover, the central bank is expecting consumers to spend more in the second half of this year because falling inflation should give some ease to customers squeeze on their budgets. However, many people are suspecting that inflation will fall to the central bank's target of 2 percent over the next 12 months time-span. According to one more survey, inflation expectations for the year ahead climbed to 2.8 percent this month from 2.6 percent in January. According to CBI's breakdown retail data, it gave a much more different and clear picture among different sections of retailers as shoppers focused on essentials now. Need fast cash in urgent then apply with 2500 loan and get quick funds and meet all your urgent needs.
Under this, since last May, food retailers had recorded their strongest sales growth, but sales of durable household goods was continued to fall sharply. In almost three years time, clothing sales had also declined at their fastest pace as well as the department-store sales fell down at their fastest pace too since May 2010. There was also a big drop noticed in the hardware and DIY sales since August 2005. However, In January, one of the indicators of consumers' confidence to spend is the value of the customers' homes and there was an encouragement from that area in Land Registry data that showed house prices in England and Wales rose 1.1 percent.