CBI predicts heavy sales slowdown

The Confederation of British Industry released a report on Friday revealing a heavy slowdown of sales. The figures for November and the prognosis for December are the worst in the organisation's 22 year old Distributive Trades Survey. Of the retailers questioned for the survey, 51 percent said that sales volumes for November were down from last year, with only 17 percent saying the opposite. Retailers are hoping for a better December, with Christmas boosting consumer spending. However, a record sales decline is expected for this year. Thirty-eight percent of retailers expects sales to drop compared with last year, with only 15 percent expecting a rise, a balance of minus 23 percent.

"Any hopes retailers had of an early Christmas present have been dashed," executive director of Asda and chairman of the CBI's DTS Panel, John Longworth, told the FT. "Consumers have been extremely reluctant to spend money, and shops will be crossing their fingers that the predicted cold spell and the rapid approach of Christmas drives people through their doors and gets the tills ringing."