Business Recovery and Insolvency Practitioners

NEWS: Retail Sales Growth at Six Month Low

Added: 07/06/2007

Retail sales growth slowed to it weakest rate in 6 months in May, a survey showed today. The British Retail Consortium monthly sales monitor showed like for like sales were up 1.8% last month on a year ago. Total sales which includes new floor space, was up 4% on the year.

Both rates were the weakest since November 06 and the BRC blamed rain and the cumulative impact of 4 interest rate rises since last August.

The figures are likely to reinforce expectations that the Bank of England will hold interest rates at 5.5% this week, although economists still anticipate that the Bank of England will increase borrowing costs later this year.

These results contrast to those of the Confederation of British Industry which suggested retail sales growth remains buoyant.

Experts expect consumer demand to slow over the course of the year given that interest rates have already risen by a full percentage point since August and look likely to increase in the short term.

BACK

Website Designed and Hosted by Autus