British retail sales inched ahead in May to mark their weakest annual rise in more than six years, official figures showed today.
The Office for National Statistics said sales rose 0.1 per cent last month, as expected. That brought the annual rate of increase down to just 1.3 per cent, its lowest since January 1999.
The figures are likely to boost expectations that the next interest rate move will be down as Bank of England Governor Mervyn King has cited the outlook for the consumer as the key downside risk facing the economy.
Policymakers still expect that spending, which has slowed sharply since the end of last year, may rebound in the coming months though not back to the 7.0-plus annual rates seen a year ago.
But retailers have complained of tough trading conditions in recent months as consumers feel the pinch from five interest rate rises in one-and-a-half years and a slowing housing market.
Today British department store chain House of Fraser reported a 3.2 per cent fall in like-for-like sales.