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High street bares brunt of tight-fisted consumers
Business digest: New survey reveals two-year low across retail industry for February
High street sales hit a near two-year low last month, as the squeeze on consumers began to show itself following the Christmas period.
A survey by the British Retail Consortium and accountancy firm KPMG revealed that total sales growth came to 1.1 per cent in February, down from 4.2 per cent in January. Apart from April 2010 (negatively affected by the timing of Easter), this was the weakest figure since May 2009.
A VAT increase, rising fuel prices and continuing economic uncertainty combined to make shoppers cautious about spending money on clothes, furniture and other products. The only exception to the rule was food, which continued to enjoy strong growth.
Helen Dickenson, head of retail at KPMG, said: "With people making less shopping trips, fewer retailers are benefiting from the limited spending capacity available".
Consumer spending accounts for around 65 per cent of the UK's GDP. The figures will be taken by some as a sign that the Bank of England should continue to hold back on raising interest rates.
Read a full report at the Independent. ·
