12/10/2010 - Sales of non-food items slow down
Latest retail figures have shown that sales growth slowed sharply last month as demand for non-food goods fell for the first time in a year.
According to figures from the British Retail Consortium (BRC), like-for-like sales grew by just 0.5% in September.
Fitted kitchens and bathrooms were particularly hard hit as consumers reign in their spending on "big ticket" items ahead of the public spending cuts to be announced.
The fall was the first dip in sales of non-food items since August last year.
Stephen Robertson, director general of the BRC, said what growth there was largely came from food firms, and this was predominantly driven by food inflation at around 4%.
"Sales growth continues to be poor. We've now had six straight months of low growth thanks to persistently weak consumer confidence and worries about the future," he said.
Mr Robertson added there was little sign yet of shoppers bringing forward purchases to beat the VAT rise in January.
"It's clear people are cautious and major spending is largely on hold."
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