May retail sales fall to 14-month low

A survey by the Confederation of British Industry (CBI) has revealed a fall in UK retail sales for the month of May.

Its monthly distributive trades survey reported a sales balance of -18 in May from +13 in April – a 14-month low and the biggest one-month drop in the index since January 2005.

According to the CBI, bad weather in the early part of the month put off shoppers, together with a slowdown in the housing market, which has led to a slump in demand for big-ticket items and household goods.

“These retail sales figures for the early part of May are clearly disappointing,” said Ian McCafferty, the CBI’s chief economic adviser.

Commenting, Howard Archer, chief UK economist at IHS Global Insight, said: “The CBI survey reinforces our long-held concern that the upside for consumer spending, and hence growth, will be limited for some time to come as households still face very challenging conditions.”

Discuss this in the Finance Markets forums

Story link: May retail sales fall to 14-month low