Bad weather cools retail sales growth

NIGEL BOURNE: "Consumer confidence remains strong"
NIGEL BOURNE: "Consumer confidence remains strong"

THE bad weather in March is being blamed for the slowdown in retail sales growth according to the latest survey from the CBI.

The CBI's monthly Distributive Trades Survey showed sales in March grew at the slowest rate for six months, well below expectations.

However, the employers' organisation suggests that forecasts for April remain strong, arguing that the slowdown is a blip rather than a sign of an end to the buoyant retail sales growth seen recently.

The sectors worst hit include sales of clothing, footwear and leather goods, suggesting that retailers may have had trouble selling spring collections in adverse weather conditions.

In contrast motor traders reported a bumper March as sales grew way above expectations.

Sales of new vehicles rose at the fastest rate since April 2002 and sales of parts and accessories also proved to be the strongest for 12 months.

Nigel Bourne, CBI’s south east regional director, said: "Many retailers blame the atrocious weather in March for a dip in sales.

“However, consumer confidence remains strong so stores will be hoping for some good trading over the Easter holiday weekend.

“Looking to the future, there is some concern in some parts of the sector that increases in council tax bills and the impact of recent interest rate rises could dampen consumer confidence."

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