Sales growth 'remains subdued'

Date: 1st April 2011

Despite recent growth, retail sales in the UK remain subdued, according to a new report.

The Confederation of British Industry's (CBI) latest figures revealed that high street trading in March was up compared to 2010.

Data from the study also showed that the growth occurred at a faster rate than the previous month.

Ian McCafferty, CBI Chief Economic Adviser, said: "Sales growth picked up slightly for retailers compared with last month, but look beneath the surface and conditions remain tough on the high street.

"With inflation edging higher and earnings growth only modest, household budgets are under increasing pressure. Consumer demand will remain weak in the coming months."

The expert added that even the "best performing" sectors, including grocers and clothing, have seen a slowing trend in recent weeks.

Overall, 42 per cent of retailers saw their sales volume rise in the 12 months to March, compared to 27 per cent that saw a fall.

Posted by Jacob Williams