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To: maceng2 who wrote (868)	12/3/2005 1:56:58 PM
From: maceng2	Read Replies (1) \| Respond to of 1417

Retail mood 'hits a 22-year low' news.bbc.co.uk Shoppers seem to be holding onto their money High Street confidence has fallen to its lowest level in at least 22 years, according to a survey by the CBI. Only 17% of retailers reported a rise in sales in November, compared with last year, the business group said. But 51% said sales were down, giving a balance of minus-35 in the latest CBI distributive trades survey. Well below the forecast of minus-15, it is the lowest figure since the study began in 1983. Retailers now expect the worst December in the survey's history. The expected balance for December is minus-23, said the CBI, with 38% of retailers expecting sales to fall, and 15% predicting a rise. 'Hopes dashed' In terms of individual sectors, only confectionary, tobacco and news retailers reported improved sales. The consumer spending slowdown is impacting on the economy as a whole and is of real concern to businesses across the board The CBI's John Longworth Grocers, who had not reported a decline in sales growth since September 2004, recorded year-on-year sales figures at minus-24. The motor trade suffered another poor month of sales, at a balance of minus-50. Although this was an improvement on October's minus-62 figure. "Any hopes retailers had of an early Christmas present have been dashed," said John Longworth, chairman of the CBI's distributive trades survey and executive director at Asda. "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. "Prices are being cut and this, coupled with the escalation in fuel prices, will see margins put under serious pressure. "The consumer spending slowdown is impacting on the economy as a whole and is of real concern to businesses across the board." Some analysts said the latest disappointing figures from the CBI could help encourage the Bank of England to start lowering interest rates. "We believe that interest rates will eventually come down by a further 25 basis points to 4.25%," said Howard Archer, chief UK economist at Global Insight.