Sales growth lower in June
Consumer confidence still fragile warns CBI
July 2 2003
Slower retail growth in June confirmed the fall in consumer spending seen since last year, according to the CBI’s latest monthly Distributive Trades survey.
While most retail sectors saw some growth, for the eighth month in a row it was weaker than the average for the past decade. 39 per cent of respondents said sales were up while 29 per cent said they were down. The balance of plus 10 per cent is a fall from plus 14 per cent in May.
The CBI said the results are an improvement on those seen in the winter, but are well down on the average of plus 33 per cent seen in the first six months of last year. Retailers have scaled back their expectation for sales growth for the year to July. Sales in June were viewed as only average, having been comfortably above average in May for the first time in six months.
Most retail sectors reported some growth in the year to June, with the exceptions being specialist food, chemists and stores selling furniture and carpets.
Alastair Eperon, chairman of the CBI’s Distributive Trades Panel, said: “The retail picture for June is particularly disappointing. Consumer spending should have been much higher when compared with June 2002 when high street spending suffered as a result of the Jubilee Bank Holidays, late half term and the World Cup. With growth continuing to slow in July, there is nothing in this survey to stop the Bank of England cutting interest rates next week.”
The figures tally with the latest Retail Traffic Index figures from SPSL, which showed a marginal 0.1 per cent increase in shopper numbers for June.
