Retail sales rise in April for first time in five months - CBI

Retail sales rose for the first time in five months in April, according to the latest data from the Confederation of British Industry.

The balance of retailers reporting year-on-year growth in sales volumes came in at +13 from -18 in March, when it suffered its biggest drop in 17 months. Analysts had been expecting a reading of zero.

CBI chief economist Rain Newton-Smith said: "It’s encouraging to see retailers with more of a spring in their step than in recent months. The recent pick up in real wages is a welcome support to the sector, making the pound in people’s pockets stretch that bit further.

"However, this month’s sales growth will have been distorted by the later timing of Easter, and falling sales in clothing and department stores underline how challenging underlying conditions remain.

"The Brexit extension means an economic crisis has been avoided, for now. However, uncertainty continues to drag on consumer confidence, and many retailers report an impact on their sales. Politicians now owe it to the country - its businesses and people - to come together in a total spirit of compromise, setting aside all party political lines, and agree a way forward to avoid a no deal Brexit."

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the rise in the reported sales balance to its highest level since November is another encouraging sign that the Brexit saga hasn’t discouraged households from increasing spending in line with their rising incomes.

"Admittedly, the CBI’s survey was carried out between March 28 and April 16, so it doesn’t cover the crucial Easter vacation period," he added.