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25th July 2008
Retail sales slump after May’s blip
Retail sales in the UK slumped in June after their apparent recovery in the previous month.
The latest figures from the Office for National Statistics (ONS) showed that retail sales dropped 3.9 per cent in June, undoing the unexpected 3.6 per cent rise recorded in May.
Worryingly, sales for predominantly non-food stores declined 4.5 per cent - the largest amount since records began.
In particular, sales of household goods, textiles, clothing and footwear showed sharp falls.
The data means that sales in non-food stores over the last quarter have risen only 1.1 per cent.
Vicky Redwood, an economist at Capital Economics, explained to the BBC: "June's data finally showed the official data moving into line with the gloomy anecdotal evidence.
"What's more, we think that spending growth will weaken considerably further, as house prices keep falling and inflation and unemployment rise further."
The recent Lloyds TSB Corporate Markets Business Barometer showed that businesses in the country were becoming increasingly concerned about their sales over the coming six months.
(c) 2008 Adfero Ltd.
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