Interest rates squeeze spending
Another study of high street spending says consumer confidence is being eroded by interest rate rises.
The British Retail Consortium's (BRC) UK Retail Sales Monitor for August showed a 1.8% sales increase compared to August 2006.
Although sunnier weekends were credited with helping food, clothing and footwear sales recover from the wet early summer, growth still remained weaker than earlier this year.
A BRC spokesman said:
"The squeeze on disposable incomes, reinforced by worries about interest rates, is depressing both retail sales and shop prices."There is no case for another hike in interest rates. The next move should be in the opposite direction."
