Housing decline hits High Street

Poor weather, an early Easter and the slowing economy led to the worst month for retailers since November 2005, business group the CBI has said.

In an April survey of shops, it found sales of items linked to the housing market, such as electrical and DIY items, were all down from a year ago.

The CBI expects sales to fall again in May, but at a slower rate than in April, due to "challenging conditions".

The CBI's Distributive Trades Survey covers 20,000 UK retail outlets.

"There is no doubt that consumers are tightening their belts as the mood about the economy and outlook worsens," said the CBI's chief economic advisor Ian McCafferty.

However, the CBI said last April's figures were boosted by better weather and the benefit of the Easter bank holidays.

Last week, the Office for National Statistics (ONS) said retail sales in March fell 0.4%, a bigger-than-expected decline.

But sales in the three months to March were 2% higher than the previous quarter, according to the ONS.

Analysts said that the figure could be interpreted as a sign that consumer spending was holding up.

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