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Last Updated: Wednesday, 16 June, 2004, 06:35 GMT 07:35 UK
High streets booming, survey says
Money in till
Doubts have been voiced that the spending bonanza will last
Rising interest rates are doing little to temper sales in Scotland's shops, according to new figures.

The latest Scottish Retail Sales Monitor has revealed sales last month were up almost 5% on May last year.

The figures suggest many consumers still have not noticed their mortgages have gone up.

Good weather meant healthy sales of summer goods and Scots were more likely to spend money on games and DVDs than people in other parts of the UK.

Some food and drink shops said it had been the best month of the year so far.

Such heady growth cannot be sustained, certainly not from domestic consumers.
Jeremy Peat
Economist
Scottish Retail Consortium director Fiona Moriarty said: "Retail sales picked up in May, despite speculation about interest rates.

"The weather was extremely good and as people spent time in the sun, they spent money on things to do in the sun."

However, one of Scotland's leading economists said the high street bonanza cannot be sustained.

Jeremy Peat, from the Royal Bank of Scotland, believes the effect of the two recent increases in interest rates will soon be felt.

He said: "Such heady growth cannot be sustained, certainly not from domestic consumers.

"If the apparent recovery in overseas visitor numbers to Scotland during the first four months of this year can be sustained, this will be positive for non-food retail sales."


SEE ALSO:
Scots shop to top of retail league
23 Apr 03  |  Scotland
Shoppers dig deep to boost sales
19 Feb 03  |  Scotland


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