According to the Capital Business Credit (CBC) quarterly Global Retail Manufacturers and Importers Survey, retailers and manufacturers can look forward to a continued surge in consumer confidence and spending through the 2012 summer shopping season.
The overwhelming majority of the 50 manufacturers and importers surveyed, 81.8%, believe that this summer season will perform as well as or better than summer of 2011. 40% believe that the 2012 summer season will surpass last year’s sales.
As consumer confidence increases, retailers, importers and manufacturers are finally seeing an increase in orders and reorders. Slightly more than one third of survey respondents (37%) indicated that they are seeing an increase in summer orders, while another third (30.4%) are seeing orders stay the same.
“This is indicative that a stronger retail and economic recovery is underway,” said Executive Chairman of CBC Andrew Tananbaum. While growth is expected for the season, it will be minimal. 45% of respondents believe summer sales will be three to five percent stronger and 35% believe it will be stronger by three percent or less.
According to the better-than-expected July retail sales report released last Tuesday by the U.S. Department of Commerce, retail sales were up for the first time in four months. Sales rose to $403.9 billion, an increase of 0.8% from the previous month and a 4.1% increase from the same month last year.