Shoppers hold purse strings tight

Retail sales have fallen in successive months for the first time in more than two years, official figures show.

The Office for National Statistics said retail sale volumes fell by 0.2 per cent in April compared to March, the same drop as the previous month.

It is the first consecutive monthly fall since January 2006, and was driven by a 1 per cent drop in food store sales.

One broker had forecast a sales drop of 0.6 per cent during April as a consumer spending slowdown continued to bite.

Statisticians said there was evidence last month of a shift in food sales to the discount sector.

It was also evidence that a slowing housing market was dragging on long-term sales trends.

The three-monthly sales figure between February and April for household goods, which includes DIY shops, fell by almost 2 per cent compared to the previous quarter.

It is the biggest fall for three years and has deteriorated each month since the start of this year.

Overall retail sales during the last three months grew by 1.5 per cent - down from the 1.9 per cent growth recorded in March.

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