Retail businesses see sales grow

There was good news for retail businesses, as high street sales increased for the second month in a row.

According to the Confederation of British Industry's quarterly Distributive Trades Survey, sales volumes were higher in August than they were 12 months ago.

Over 50% of those questioned said volumes of sales rose during the first two weeks in August, with the resulting balance of +35% the fastest increase since April 2007.

Lai Wah Co, head of economic analysis at the organisation, noted that retailers are "upbeat" about their prospects for the next quarter.

She added that many companies are hopeful that this "strong" growth will continue into September.

However, the specialist observed that their outlook for consumer spending is still not brilliant.

The proposed public sector cuts may reduce the amount of disposable income many have to spare.

This comes after the Institution of Chartered Accountants in England and Wales noted that businesses are less confident as the recovery slows.