Retail sales ‘fizzling out’, warns CBI

Sales of goods on Britain's high street have "fizzled out" and will be down for some time to come, the CBI employers' organisation has warned. In the first two weeks of June the CBI's retail sales index fell for the first time since June 2010 as cash-strapped consumers cut back on clothing, groceries and big-ticket items.

Consumers were "feeling the pinch" as wages fail to keep pace with the rising cost of living, the CBI said. Future hikes in energy bills are expected to intensify the squeeze.

Economists have warned that the latest retail figures are "very worrying" for Britain's growth prospects. Consumer spending accounts for 64 per cent of the economy.

Read a full report in the Independent ·