MNI: UK CBI Jan Sales Growth, Feb Expectations, Decline

-UK Jan CBI Reported Sales Balance +12 Vs +20 Dec

By David Robinson

     LONDON (MNI) - UK retail sales growth slowed in January and expected sales

growth for February eased, as retailers saw a sluggish start to the new year, a

survey from the CBI found.

     The CBI's Distributive Trades Survey reported that a net 12% of retailers

reported higher sales growth in January than a year earlier, down from a net 20%

in December. The expected sales balance for February fell to 13% from 17%.

     The strong November and December outturns saw the three month moving

average for sales volumes rise to 19 in January from 3 in the three months

through December, with the latter hit by the -36 reading in October.

     The volume of sales for time of year fell to -17 in January from -3 in

December.

     The CBI reported a decline in sales in furniture and carpets, which would

chime with the softening in housing market activity evident in recent data.

     With consumers real earnings growth in negative territory, the kind of

strong retail sales growth that the CBI reported over the Christmas period

looked unsustainable and these data do show the  pace of growth easing.

     "Household spending will remain under pressure this year from higher

inflation and low wage growth, which will continue to weigh on sales growth in

the retail sector," said Anna Leach, CBI Head of Economic Intelligence.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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