While cold weather back in March caused a multitude of problems for the business community, the construction and service sectors, in particular, the warmer conditions are having a more positive effect on the economy. As the excitement surrounding the World Cup continues to build, retailers have reaped the awards. Sales of beer and barbeques have increased, and British high streets could be set to see a complete recoup of its losses.
As more consumers venture to pubs and restaurants to celebrate the good weather, service sectors are seeing their profits roar. Brick and mortar could see a return to favour, as consumers enjoy venturing out into the sunshine for their retail pursuits.
In its first estimate of monthly GDP growth, the Office for National Statistics revealed that while the economy reached a virtual standstill in March, economic growth grew by 0.2per cent and 0.3per cent in April and May respectively. The report further stated that the service sector grew by 0.4 per cent, no doubt influenced by warmer weather and the change in behaviour from historically penny-pinched consumers.
The improved growth trajectory needs to be sustained, however, and British businesses are the ones to do it. Stronger business finances will keep profits protected and ensure the upwards direction does not take a downward turn. At the Credit Protection Association, our debt recovery services free up cash flow and give our Members the opportunity to strengthen their financial position and the innovation of their business.
There was a significant pick-up in spending at hotels and restaurants as the sunshine tempted people out of their homes. Spending on leisure activities and holidays boosted consumer-facing industries by 0.9pc and overall GDP by 0.1pc.
