Latest retail figures have shown sales in January were weaker than those a year ago, according to CBI.
The industry watcher’s distributive trades survey reported 30 per cent of retailers saw a rise in sales compared with last year, while 33 per cent reported a fall.
The minus three per cent balance was well below the figures of 21 per cent predicted by economists, and the weakest since September. The results are the worst figures for January since the CBI survey began in 1999.
Ian McCafferty, CBI chief economic advisor, said: “January has proven slightly disappointing for many retailers, after the mixed performance in the run-up to Christmas.
“Retailers expect the more modest pattern of sales to continue in coming months.”
He said shop managers remained positive, however, about the business prospects in the near future, predicting a modest sales growth.
McCafferty said he expected the Bank of England to keep interest rates on hold at 4.75% for some time while it waited for a clearer economic picture to emerge.
