20/05/2010 - Retail sales growth slows in April
Consumers were cautious with their spending on the high street last month amid fears of Government belt tightening and tax rises.
Official figures reveal that retail sales growth slowed further in April, as sales volumes rose by 0.3% month-on-month, the Office for National Statistics said. This was compared to March's upwardly revised 0.5% growth.
Growth was even lower at 0.1% when spending on fuel was stripped out.
The twin factors of anticipation of impending action to lower the UK's huge debt and the reversal of the VAT reduction caused retail sales to slow sharply.
But sales by value grew by 1.1% in April against 0.8% in March in a further sign of rising inflation.
Retail prices rose by an estimated 2.8% year-on-year in April, according to the ONS.
Howard Archer, chief economist at IHS Global Insight, said: "April's relatively modest growth in retail sales suggests that the consumer is alive but not kicking particularly hard."
"We suspect that the upside for consumer spending - and hence overall economic growth - will be limited for some time to come as households still face very challenging conditions," he added.
Copyright © Press Association 2010
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