Retail sales weaken in UK

London, United Kingdom (AHN) – Retail sales in the United Kingdom weakened more in September, according to the latest monthly survey by the Confederation of British Industry released Tuesday.

Inflation has exceeded wage growth for months, leaving British consumers unable to spend.

The business group records the sales volume balance of its members. That is calculated from the percentage of retailers reporting an increase in sales versus those reporting a decrease. The group’s sales volume balance for September dropped to minus 15 from minus 14 in August, the CBI said.

Sales at furniture and department stores were most affected. The CBI warned retailers to prepare for a difficult Christmas season.

Analysts say weakening retail sales indicate the economy is slowing, and that it might be time for the Bank of England to reopen its quantitative-easing program of buying assets to boost the economy.

Along with stagnating retail sales and an inflation rate that has grown faster than wages, unemployment and the government’s austerity program are further battering the UK economy. Moreover, consumers face higher utility bills going into the winter.

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