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Study reveals consumer resilience as sales volumes increases again

britishUK retail sales levels have indicated a year-on-year growth for a second successive month in August in a study from the Confederation of British Industry which offers some comfort that the consumer is demonstrating resilience in tough economic times.

Fifty-three per cent of retailers reviewed claimed sales levels in the first couple of weeks of August were superior as compared to the corresponding period the previous year, and merely 18% said they were lower.

'The broader outlook for consumer spending is still uncertain, given the VAT rise next year, subdued pay awards and the feed-through of public spending cuts to job losses,' said Lai Wah Co, the CBI's head of economic analysis.

The net 35% testifying a year-on-year increase in sales indicated the fastest annual pace of increase of retail sales volumes since April 2007. This equilibrium was to some extent stronger than the net 33% living through year-on-year growth in levels in July. And a net 39% of retailers predict a year-on-year improvement in sales volumes in September.

Samuel Tombs, UK economist at consultancy Capital Economics said that, the quarterly business buoyancy balance (proposes) that retailers anticipate rigid sales growth to persist for a few more months at least. He said that nonetheless, they remain positive that the fiscal squeeze will brake the consumer recovery in the future.

The latest findings from the CBI indicate that business on the High Street is far stronger than suggested by other recent surveys. The British Retail Consortium's most recent data suggested that sales of clothing and other goods, excluding food, slowed in July. It also said shoppers are hesitating about buying big-ticket items.

Lai Wah Co, CBI head of economic analysis, announced that that, retailers are confident that sturdy sales growth will carry on next month. Nonetheless, the broader viewpoint for consumer spending is still vague.