UK retail sales fall

CBI has reported fall in UK retail sales

Retail sales fell in the year to May as the previous month's slight gains proved an Easter "blip", the CBI has said.

According to the business group's Distributive Trades Survey, a balance of 17% of firms reported sales were down.

This compared with a positive 3% balance in April, boosted by late Easter.

Quarterly figures also released indicated that retail prices rose at the slowest rate for nearly three years in the 12 months to May, with this quarter's balance of 12% the lowest since August 2006.

Andy Clarke, chairman of the CBI Distributive Trades Panel, said: "Conditions were tough again in May for retailers, proving April's better sales figure was a temporary blip.

"Trading conditions are expected to remain difficult in June.

"The harsh reality is consumers need good reason to part with their hard-earned cash."

Retailers continued to cut jobs, with a 29% balance reporting they had reduced their head count.

The CBI said while weak this was an improvement on the last quarterly figures in February, which showed a negative balance of 49%.

Grocers and retailers selling footwear and leather goods both reported positive sales growth in May, although at a slower pace than the previous month.