The wettest February on record didn’t dampen Brits’ appetite for new spring outfits, as retail sales boosted the UK economy.
Analysts predicted a 0.3 per cent drop in high street spending in February — but official figures show it remained flat.
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It gives experts confidence the UK has been lifted out of recession. Official GDP figures show that the economy has been powered by retail sales so far this year.
Rob Wood at Pantheon Macroeconomics predicted that retail sales would keep growing strongly in the first three months of the year, “helping the economy leave last year’s recession behind”.
It comes as data by GfK showed consumer confidence has turned positive for the first time in over two years. Disposable household incomes are finally rising as wages go up at the same time as food price inflation and energy bills fall.
Oliver Vernon-Harcourt, of Deloitte, said: “Brighter days are ahead with the short-lived and shallow recession behind us and inflation reaching its lowest rate in two years.
“The high street can be hopeful that fewer inflated prices will support greater spending and footfall.”
The Office for National Statistics said a good performance for clothes shops and department stores offset falling food and fuel sales.
The ONS’s Heather Bovill said the growth in clothing “rebounded after recent falls as people invested in new season’s collections”.
A lot of spending was done online, with a 2.1 per cent rise in internet spending in February.
Voda Probed
Vodafone and Three’s £15 billion merger risks pushing up prices for users, the Competition and Markets Authority watchdog has warned.
The regulator is preparing a six-month probe into the deal, which combines 27 million customers. The firms say it will help them compete with BT and Virgin Media O2.
Aston in Raid
Aston Martin has poached the boss of rival Bentley to be its fourth chief executive in four years.
An hour after Bentley announced Adrian Hallmark’s departure “by mutual consent”, Aston Martin welcomed him as its new leader.
Bentley had increased its profits tenfold under Mr Hallmark.
Good Week
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Next boss Lord Simon Wolfson after declaring bumper profits and the retailer’s best outlook for seven years.
Bad Week
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DFS boss Tim Stacey who warned of lower profits because people were holding back on buying sofas.