Retail sales volumes plummet

Volume retail sales have fallen in the year to April at the sharpest rate for 13 years. The CBI monthly Distributive Trades Survey found 46 per cent of retailers experienced a drop in sales volumes throughout April, compared with 32 per cent that said volumes were up.

Furniture and carpets continued to do badly in April and clothing sales also fell for the first time since March last year. Household durables did well in the month, driven by demand for technology, such as iPods and DVDs. Booksellers, stationers and grocers were the only other sectors that increased sales volumes in the month.

CBI chief economic advisor Ian McCafferty said: 'Tough trading conditions are continuing for most retailers, despite expectations last month that the position would stabilise. 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.'