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Shoppers rein in spending in January
January 26, 2012
CBI research shows that shoppers are cutting back on spending - a trend that retailers expect to continue into February.
High-street sales have fallen in the first weeks of the new year, with shoppers doing their best to cut back on spending.
New figures from the Confederation of British Industry (CBI) show that 44 per cent of retailers saw sales volumes fall in the first two weeks in January, compared with the same time last year.
Just 22 per cent of retailers reported a rise in sales volumes, with shops generally reporting disappointing sales for the time of year.
Retailers across a wide range of sub-sectors - including hardware & DIY, household goods and department stores - reported a fall in sales volumes compared with the first two weeks in January 2011, and many told the CBI that they expect annual sales volumes to continue to fall next month.
Ian McCafferty, the CBI's chief economic adviser, said: "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.
"Family budgets are under continuing pressure with inflation still high and wage increases modest."
Earlier this week, research by Aviva also found that consumers are cutting back on spending, with 30 per cent no longer spending money on entertainment or holidays.
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