Q2 sees shoppers return

Hot weather, a royal wedding and bank holidays boosted many fashion retailers in April. The recent gloom on the high street and bleak outlook for rest of the decade according to research, indicate at the least some improvements in the second quarter of 2011.

But although the strong sales represent a good start to the second quarter for retailers, the unexpected growth is could be a one-off brought about by warm weather and spending around the Royal wedding.

The underlying pattern for retail spending, which makes up only a small fraction of the UK economy, is still fairly strong. It rose at an annualised 4 per cent in the three months to April, faster even than the growth before the rise in VAT in January.

Consumer spending, including in the shops, is expected to suffer as high inflation persists this year, alongside weak wage growth and public spending cuts.