UK retail sales took a significant dip in the first month of 2010, according to new figures published today.
The survey, compiled by the Confederation of British Industry, suggests that sales on the High Street tumbled by the highest annualised rate since September. The figures show that 36 per cent of retailers saw a drop in sales, while 28 per cent reported an increase.
This leaves a balance of -8 per cent - significantly worse than most retail analysts had predicted. Furniture and other expensive household goods fared the worst, after having posted strong figures over the preceding quarter.
The VAT increase is being cited as one of the major factors behind the retail slowdown. But consumers continue to be hit with concerns about job security, tax rises and below-inflation wage growth.
Government figures published earlier this week show that the UK exited recession in the fourth quarter of 2009, but grew by just 0.1 per cent. This weak expansion suggests that any recovery seen in 2010 is likely to be ponderous and fragile.
Groceries and footwear were the only retail sectors to post a healthy growth during January.
