28-06-2007
Retail growth at its lowest level in months
Retail growth in June is at its lowest level since November 2006, according to a survey from The Confederation of British Industry.
In the survey 37% of retailers said that their year-on-year sales were up and 20% said sales were down. The growth is measured in the balance - +17 in June is way down on May’s +31 and April’s +44.
Effectively the survey shows the effects of a number of economic factors coming together to reduce consumer spending.
Interest rate increases are making it more difficult to borrow money and having an impact on the housing market meaning that overall consumers have less money to spend.
The inclement weather during most of May and June has kerbed spending on clothing and other seasonal purchases in the home and garden sectors.
Despite these factors the three-monthly average remains high and so the next few months will be the telling time for retailers.
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