Shoppers tighten purse strings

SHOPPERS curtailed their spending in October sparking the first
fall in UK retail sales for nine months.

The Office for National Statistics (ONS) reported that sales
dipped 0.1% compared to a 0.3% rise in September.

Interest rate rises along with higher living costs have seem
many consumers tighten their purse strings.

But while shoppers are appearing more cautious, analysts say
that the long-term trend is still positive.

Competitive price discounting among retailers has successfully
boosted sales over the past year despite successive interest rate
hikes.

Sales over the three months to October were up 5.1% from the
same period in 2006, and up 14% on the previous three month period
from May to July.

That said, many high street retailers are still downbeat in
their forecasts despite entering the Christmas period.

However, the risk of a rise in inflation has prompted
predictions that the Bank of England will cut interest rates in the
new year.