31 January 2008, 14:53 PM
  • The first month of the new year did not reverse the recent trend as retailers recorded only a minimal growth in sales during January.

The CBI’s latest Distributive Trades Survey showed only 39% of respondents thought year-on-year sales volume rose in the first half of January – 34% said they were down. This continues the trend of slowing sales, which started after last April. However, the results are better than the slight fall, which firms were predicting.

Jon Longworth, chairman of the CBI’s Distributive Trades Panel, says, “The January sales were very flat this year and weaker than the lacklustre lead-up to Christmas. While purchases of groceries and household essentials went quite well, shoppers were watching their wallets.

“However, this survey and recent CBI manufacturing data show that while market turbulence is undoubtedly affecting consumer confidence, the economy as a whole is nonetheless bearing up and is continuing to grow, if more slowly.”

On the plus side, retailers do see conditions improving next month. But, the expected growth will be slower than the average for the second half of 2007.