Retail
Weak retail data raise recession fears
(FT) - The heaviest snowfalls in decades and the rise in value added tax caused havoc on the high street in January, forcing retail sales down sharply and raising the threat that the economy could slip back into recession in the first quarter.
Sales volumes fell 1.2 per cent excluding petrol and diesel as parts of the country were brought to a standstill by snow early in the month. The rise in VAT back to 17.5 per cent after 13 months at a lower rate probably also contributed to reluctance to spend.
The data, from the Office for National Statistics, echo private sector surveys from the British Retail Consortium and CBI employers’ group reporting very weak sales in January. The BRC said it had been the worst January for retailers in 15 years.
Including fuel, sales fell 1.8 per cent, the biggest drop in business on the high street since 1995, apart from an unusually volatile period in spring of 2008.
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