Central London May retail sales growth slows - survey UPDATE |
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Mon, 11 Jun 2007 10:19
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(Adds comment, background)LONDON (Thomson Financial) - Retail sales growth in central London slowed in May amid evidence that recent hikes in interest rates are beginning to bite, a leading business lobby said.In its latest London Retail Sales Monitor, the British Retail Consortium reported May sales rising by 6.3 pct year on year in value terms, lower than the 14.1 pct gain reported in May 2006, based on like-for-like figures which strip out the impact of new stores.April, by contrast, showed a lesser year-on-year gain of 4.5 pct on a strong comparative figure.'London sales growth (in May) was not as strong as in May 2006 and some retailers reported challenging conditions, with evidence that recent interest rate rises are beginning to affect demand, particularly for big-ticket items such as large electricals and furniture,' said Kevin Hawkins, director of the London Retail Consortium, a division of the BRC.'London's retailers will hope there are no further interest rate shocks anytime soon,' he added.The Bank of England held its benchmark interest rate at 5.50 pct at its June meeting, following four quarter-point hikes since August.However, the central bank is determined to bring inflation back down to the 2 pct target following March's spike to 3.1 pct and, as such, is widely expected to increase borrowing costs at least once more this year.alex.brittain@thomson.comabr/ejbCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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