UK retail sales fall sharply in April

Retail sales fell at a record annual pace in April, the British Retail Consortium said yesterday, providing the latest evidence that a consumer slowdown which started late last year is persisting.

But the 4.7 per cent fall in like-for-like sales - the biggest since BRC records began in 1995 - came as the busy Easter long weekend landed in March this year, leaving this April's figures depressed compared to 2004.

The drop followed a 1.8 per cent rise in like-for-like sales in March, leaving them down a more modest 0.9 per cent in the past three months on a year ago. On a total basis, sales fell 1.3 per cent in April.

While the decline was exaggerated by the timing of Easter another report showing weak retail sales will not be welcomed by Bank of England policymakers, who have identified household spending as the greatest risk to the economic outlook.

Policymakers left interest rates steady at 4.75 per cent for a ninth month running on Monday.

"Sales in most sectors suffered, especially big-ticket items," said BRC director-general Kevin Hawkins in a release.

"A slowing housing market, pre-election economic uncertainty and the continuing threat of interest rate rises dominated consumer confidence in April."

Sales of electrical goods and furniture, items most closely linked to the fortunes of the housing market, were hard hit. Trade in discretionary and non-essential items was especially bad, the BRC said.