PRESS DIGEST - Financial Times - May 23

Financial Times

RETAIL SALES FALL FOR SECOND MONTH

Data from the Office for National Statistics shows that retail sales fell for the second consecutive month in April but that consumers are spending more freely than expected. The ONS said that the volume of retail sales fell 0.2 percent in April, taking the three-month-on-three-month growth rate from 1.9 per cent to 1.5 percent. The monthly fall in sales volumes was driven by a one percent drop in sales at food stores, the biggest fall since August 2006. In non-food stores, sales of household goods continued to decline and clothing sales were flat on the month. Sales in department stores strengthened. The ONE also released data showing business investment fell 1.4 per cent quarter-on-quarter in the first three months of 2008.

MORE MANUFACTURERS EXPECT TO RAISE PRICES