Grainne Gilmore
We've made some changes
to The Sunday Times
Retail sales dropped to their lowest level since November 2005 this month as poor weather and an early Easter exacerbated the effects of the economic slowdown on spending, the CBI said today.
The CBI's monthly snapshot of the high street showed that 52 per cent of retailers said sales volumes were lower than the same period a year ago, while 25 per cent said they were higher - the weakest picture since November 2005.
Half of retailers said sales for the time of year were poor while 15 per cent reported them as good.
Howard Archer, of Global Insight, an economic consultancy, said: " Retail sales were surprisingly resilient in the first quarter according to hard data from the national statistics office, but the April CBI distributive trades survey strongly suggests that the consumer is now struggling markedly
The Easter weekend fell in March this year, and the country was battered with rain and high winds, deterring many shoppers from hitting the high street.
Ian McCafferty, the CBI's chief economic adviser, said:
"There is no doubt that consumers are tightening their belts as the mood about the economy and its outlook worsens. The trend in recent months has been one of slowing growth and now we've seen a fall in sales volumes, particularly so for goods related to the housing market.
"The survey needs to be seen in the context of the timing of Easter this year and the poor weather, which have further dampened sales this month. Nevertheless trading conditions are challenging for retailers and sales are expected to fall again in May, albeit at a slower rate."
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