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Last Updated: Tuesday, 8 May 2007, 23:05 GMT 00:05 UK
UK retail sales slow during April
Shoppers in London
Analysts are asking how much interest rate rises will hit shoppers
UK retail sales growth slowed in April, official industry data has shown.

Sales rose by 2.4% last month, compared with a 6.8% increase in the same period a year earlier, according to the British Retail Consortium (BRC).

Analysts warned that the figures could signal a longer-term retail slowdown, although clothes sales were boosted by warm weather over the Easter holidays.

UK interest rates have been rising and there are fears that higher borrowing costs will slow consumer spending.

Warm and dry

Over the three months to the end of April, sales growth dipped to 3.3%, from 3.5% at the end of March, the BRC said.

The figures "could represent the beginning of a lower growth phase as the comparatives become tougher and the outlook less favourable", said Helen Dickinson, head of retail at accountancy KPMG.

Even so, while sales growth has weakened, it was still strong enough for the BRC to call the performance "good".

Helping drive sales in April were clothing and footwear as warm weather prompted many people to update their summer wardrobe.

"This is a good result, helped by the exceptionally warm and dry weather which prevailed through most of the month," said Kevin Hawkins, director general of the BRC.

"Predictably, some categories did better than others, although there was a general falling-off in sales growth towards the end of the month," he added. "Now that Easter distortions are out of the way, we should get a clearer reading of the real level of sales growth as May progresses."


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