Christmas sales slip


Christmas sales slip
Retail sales worsened from November to December, official figures show.

The Office for National Statistics (ONS) said total sales volume fell by 0.4 per cent between the two months, indicating a disappointing festive season for Britain's shopkeepers.

Individual companies' trading statements suggest the non-food sector was especially badly hit, suffering a 0.9 per cent fall, while food sales were up by the same amount.

Textile, clothing and footwear sales were at their lowest 12-monthly growth since February 2009, having increased by just one per cent.

Analysts say the expected economic slowdown due in 2008 had already begun in the final quarter of last year, as falling house and equity prices combine with rising utility costs and relatively high interest rates.

Tighter lending practices caused by the collapse of the US subprime market and subsequent global credit crunch are having a wider negative impact, raising the likelihood that the Bank of England will cut interest rates again next month.

Vicky Redwood of Capital Economics said: "The monetary policy committee (MPC) is wary of taking the sales figures at face value until it knows what happened in the January 'sales' too – but surely this is enough to cement a February rate cut and more cuts thereafter."

After cutting rates to 5.5 per cent in December the MPC voted for a hold earlier this month, defying moderate expectations of a second successive reduction.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure