CBI: Retail sales continue to fall

| January 27, 2009 | 0 Comments

Figures from the CBI have revealed that retail sales volumes have fallen for the tenth consecutive month with durable household goods (such as electrical equipment) and clothing retailers reporting the heaviest falls.

The organisation said that volumes will continue to fall as consumers tighten their purse strings as recession bites and unemployment rises.

According to the organisation’s latest monthly Distributive Trades Survey, nearly half of shops (47%) reported a fall in sales in the first two weeks of January, and that 52% are anticipating a decline next month - the worst figure since the CBI started the series back in 1983.

Ian McCafferty of the CBI warned that retailers will continue to suffer this year as the recession takes hold and believes February will be challenging.

Official figures confirmed last week that the UK is in recession after Gross Domestic Product fell by 1.5% in the fourth quarter of last year, following a 0.6% contraction in the three months prior to that.

It is predicted that this recession will be the worst since World War II as a result of a continued fall in house prices and the global financial crisis.

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