Squeezed by high debts, rising interest rates and gloom in the housing market, British consumers' appetite for high street purchases remained weak for the second month in succession, according to figures published yesterday by the British Retail Consortium (BRC).
Retail sales in the UK rose by 0.6 per cent in February, but this was compared to a weak February performance in 2005. Stripping out the effect of expansions, new shop openings and closures on retailers' sales or profits, the three-month trend rate of growth weakened in February to 0.9 per cent from 1.1 per cent in January.
Kevin Hawkins, BRC director general, said consumers were likely to remain gloomy for the foreseeable future "There is no sign of an upturn. Reports of a recovery in the housing market have yet to work through to the big-ticket items."
"With consumer confidence still weak amid concerns about personal finances, shoppers remain wary of committing to larger housing-related purchases," the report said.
"The figures are a demonstration that retailers are continuing to have a tough time, but some of this is undoubtedly the cold weather," said Philip Shaw of the British Retail Consortium.
• Statistics published recently by the Central Bank of Ireland show that private sector borrowing continues to expand at over 28 per cent. Last week the European Central Bank raised its main refinancing rate by 25 basis points.
