Travis Perkins, owner of the Wickes DIY chain, has warned of a significant slow-down of consumer spending over the coming months.

Despite delivering a robust set of trading figures for the past 11 months, Geoff Cooper, the chief executive of Travis Perkins, warned that the deterioration in the housing market will quickly put the brakes on sales growth.

Mr Cooper said the latest quarter point cut in interest rates had failed to revive consumer confidence that has been in the doldrums for several months.

He said: “Our view is that it is not a question of the number of rate cuts but the mood music around it - the consumer needs to have from the Bank of England information that it will be making cuts in the future.”

Sales of big-ticket items through Wickes’ show rooms such as kitchens, bathrooms and bedrooms fell 5.7 per cent over the 48 weeks to 1 December. The decline in these sales has however been steady over the past year, with no signs yet of any worsening over the past few weeks.

Show room sales may account for only 5 per cent of Travis Perkins group sales but its performance provides a window onto the health of the economy. Sales of bathrooms - averaging £2,500 each - and kitchens tend to reflect the health of the housing market, with sales tending to rise in line with house prices inflation.

“The consumer has for most of this year decided that he will not do so much work replacing kitchens and bathrooms. That has not changed - it is not getting worse, nor is it getting better.”

That trend is however unlikely to last, Mr Cooper admitted.

He added: “It is all about sentiment. When the housing market slows down, people move less. When house prices fall there is less mortgage equity withdrawal. House prices are now falling so there will be a fairly sharp moderation in growth of our sales next year.”

Mr Cooper declined to predict where spending in the wider DIY market as a whole would go. “Events are moving so rapidly - I would be on a hiding to nothing if I tried.”

Wickes’ overall like-for-like sales over the 48 weeks to 1 December rose 7.7 per cent, while like-for like trading rose 9.2 per cent at the group’s merchanting division that includes the Travis Perkins, City Plumbing, Keyline and CCF brands. Both divisions have gained market share at the expense of B&Q and Homebase.

Total turnover to the end of November is up 12.1 per cent on last year with new store opening and acquisitions boosting underlying trading. Mr Cooper confirmed the group was on course to meet City expectations for the full year. Analysts forecast it will make increased pre-tax profits of about £255 million on £3.15 billion of turnover.

Travis Perkins shares fell 49p yesterday to 1268p.

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