Retailers' sales volumes in Britain have risen at their slowest rate in nearly two years in August, suggesting a slowdown in consumer spending has finally set in, the Confederation of British Industry has said.
The CBI said this morning that the volume of sales balance fell to +5 per cent in August from +16 in July and versus retailers' expectations last month of +25 per cent.
The survey follows three months of official data which has suggested consumer spending was slowing and will offer some comfort to the Bank of England as it gathers for this week's interest rate meeting.
The CBI said this was the fourth consecutive month in which sales had fallen below expectations and was the slowest rate of growth since October 2000.
Retailers are expecting the sales balance to rise to +10 in September.
The CBI said the business situation balance fell to +10 in August from +33 in May, suggesting retailers were less confident that at any time since November 2000.
"This survey confirms our view that the growth of consumer spending is slowing sharply from the rapid rates seen through most of 2001 and early 2002," said Ian McCafferty, CBI chief economist.