"Given the key role of consumer spending, the CBI survey heightens concern that the economy is set for further contraction in the first quarter of 2012"
- Chris Williamson, the chief economist at Markit
U.K. retail sales fell in January, said the Confederation of British Industry on Thursday. The index measuring sales declined to -22 from 9 in December. Above 0 indicates higher sales volume, below indicates lower.
"Shoppers have reined in spending across the board at the start of the new year, after taking advantage of early discounting last month, which boosted pre-Christmas sales," said CBI chief economic advisor Ian McCafferty.
"Consumers are still holding off, particularly from buying big-ticket items, like washing machines and fridges," he added.
"Given the key role of consumer spending, the CBI survey heightens concern that the economy is set for further contraction in the first quarter of 2012 after GDP fell 0.2% in the fourth quarter of 2011, thereby putting the UK back into recession," said Howard Archer, chief economist at Global Insight.
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