CBI: High street sales slump to 14-month low

High street retailers had their worst fortnight in 14 months, the CBI said today, as 18% more of them reported falling sales than did rising ones.

Ian McCafferty, chief economist, said: "These retail sales figures for the early part of May are clearly disappointing, with many sectors failing to achieve higher sales than a year ago.

"Unseasonal poor weather at the start of the month is likely to have dented clothing sales, while some signs of slowing in the housing market may help to account for the renewed weakness in sales of big-ticket items and other household goods.

"Retail conditions look to remain fragile, however, as another year-on-year fall in sales is expected in June.

"It appears that shoppers are feeling the pinch again and are being cautious with their purchases, given the squeeze to real incomes from higher prices and only a modest rise in average pay."