Llike-for-like retail sales fall -0.9 percent
Like-for-like retail sales fell 0.9 percent on a year ago in July, a survey showed on Tuesday, as the economic slowdown hits consumer appetite for spending.
Inflation driven up by petrol and foodThe British Retail Consortium said the value of total retail sale, which includes new floorspace, came in 1.7 percent higher than a year ago, after a 2.1 percent annual rise in June.
In the three months to July, like-for-like sales were 0.3 percent higher than the same period last year.
Like-for-like sales have now fallen for four out of the last five months, after a two-year run of growth, indicating that rising living costs, a rapidly weakening housing market and rising unemployment are starting to take their toll.
"In July, every sector except food recorded falls," said Stephen Robertson, BRC director general. "There are few signs the slowdown as yet bottomed out."
Economists say Britain faces a growing risk of slipping into its first recession - two consecutive quarters of contraction - since the early 1990s, although official figures still show the economy is growing slightly.
Consumer confidence has slumped to its lowest on record and many households are finding there is less cash available as power companies ramp up their prices and food costs rise.
The Bank of England, however, is not expected to cut interest rates to boost the economy any time soon because inflation is running at nearly twice the official 2 percent target. Slower growth is expected to cool the inflation threat.
Official inflation data on Tuesday is expected to show consumer prices rising 4.1 percent on a year ago in July and inflation is forecast to spike near 5 percent later this year.
(Reporting by Matt Falloon, editing by Mike Peacock)
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