CONSUMER spending is set to remain weak over the summer, analysts warned yesterday, as the CBI's latest high street snapshot showed subdued sales.
The distributive sales survey revealed that a balance of 1 per cent of firms achieved a rise in year-on-year sales volumes – up from last month's minus 3 per cent – but sales of "big ticket" items such as washing machines and fridges had fallen shar
ply.
Analysts warned that spending would be "considerably softer" in the near future.
Howard Archer, chief UK economist with Global Insight, said: "The survey does little to change our view that consumer spending will be softer over the coming months after a surprisingly robust start to the year.
"We believe that spending will suffer over the coming months as consumers are pressurised by muted real disposable income growth, tighter lending conditions, a substantially softer housing market, lower equity prices and increased debt levels."
Last month's negative figure was the first in more than a year, while March's 1 per cent rise was well below the long-term average of plus 17 per cent.
Economist Vicky Redwood of Capital Economics said the CBI survey pointed to "very sluggish high street spending growth".
She added: "What's more, the earlier fall of Mother's Day and Easter compared to last year should, if anything, have boosted the survey.
"It surely cannot be long before consumers give up the fight against weak income growth and a faltering housing market."
The CBI said retailers were expecting the outlook for next month to remain subdued, with sales volumes expected to be broadly the same as last April.
Ian McCafferty, the CBI's chief economic adviser, added: "This month's survey has borne out retailers' expectations that the strong growth enjoyed in 2007 has come to an end.
"The picture now is of subdued activity as consumers tighten their belts."
The full article contains 314 words and appears in The Scotsman newspaper.
