Credit card retail spending slows

04 May 2005
New figures from the Confederation of British Industry (CBI) have shown that UK retail sales have dropped at their fastest pace in nearly 13 years.

According to the CBI's Distributive Trades Survey out today sales have dropped in April, with 46 per cent of retailers reporting a decline in sales.

However, some shoppers must still be keen to put their purchases on the plastic, with 32 per cent of retailers reporting a year-on-year rise in sales.

The Monetary Policy Committee (MPC) is set to meet next week to look into the future level of interest rates, but following the results the CBI has called on the Bank of England to leave rates on hold.

CBI chief economic advisor, Ian McCafferty, said: "This ongoing decline in sales is likely to reflect the recent fall in real disposable incomes, higher fuel and utility bills, reduced activity in the housing market and higher mortgage rates than a year ago."

Products that still proved popular during the period were household durables, grocery items and stationery.

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