01 August 2007, 20:27 PM
  • Retailers' hopes for a strong summer have so far failed to materialise, according to the Confederation of British Industry (CBI).

Its latest high street survey said retailers enjoyed steady year-on-year growth in the first half of July but despite annual summer discounts, they said volumes for the time of year were below average and shops expected growth to slow further in August.

However, 42% told the CBI that sales volumes were higher than a year ago and 24% reported a decline, giving a balance of +18%.

A CBI spokesman said, “The high street still saw an increase in year-on-year sales in July but the rate of growth is below the March-to-May peak, and retailers’ hopes for bullish summer sales have failed to materialise.

“The relatively poor performance of the DIY and durable household goods sectors in particular suggest the impact of recent interest rate rises is starting to be felt by shoppers.”