smallbusiness.co.uk: Helping your business think big

Retail sales edged up last month, despite challenging conditions for consumer spending.

Sales increased by 0.3 per cent in April from March, according to the Office for National Statistics. Clothing and footwear retailers enjoyed the biggest boost, with a rise of 2 per cent over the month.

Jörg Radeke, an economist at the Centre for Economics and Business Research, says: ‘Today’s data supports the picture of an established recovery in the retail sector following the disruptions at the beginning of the year. This is even more remarkable as low earnings growth and above target inflation have a negative impact on spending power.

‘Going forward the retail industry is facing considerable challenges in the form of potential tax increases, rising cost of living and sluggish earnings growth. Against this backdrop, retailers are likely to struggle to keep the modest growth momentum seen over the last couple of months.’

David Kern, chief economist at the British Chambers of Commerce, adds: ‘Although these figures were marginally better than expected, they confirm the broad picture of a fragile recovery that is still facing many obstacles.’