Financial news categories
Financial news archive
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
Increased retail spending unlikely to continue
25 June 2008
Despite recent encouraging figures, retail spending is unlikely to continue to increase, according to an economic research consultancy.
While the Office for National Statistics recorded a 1.8 per cent increase in sales in May compared with the previous three months, spending on the high street is likely to fall as the credit crunch continues to tighten household budgets.
Vicky Redwood, UK economist, Capital Economics said: "With so much going against consumers at the moment it's hard to see how they can continue to be spending as much. We would expect to see further signs of weakness - perhaps monthly falls."
Interest rates are likely to rise if the Bank of England thinks the figures indicate a robust economy, according to Ms Redwood.
"If you take the numbers at face value it obviously increases the chances that the next move in interest rates will be up," she added.
According to the British Retail Consortium, sales in May rose by 1.9 per cent because of the warm weather.
