Sales fall again as recession hits home improvements

THE DIY, furniture and carpet sectors are suffering in the recession as the CBI yesterday revealed that retail sales fell for the third month in a row.

According to the business group's latest distributive trades survey, 47 per cent of retailers said sales volumes were down in the year to July, against 32 per cent reporting an increase.

The balance of minus 15 per cent was slightly better than expected, but firms indicated they were braced for a heavier fall of minus 23 per cent in August.

Grocery stores continued to see strong growth, while the only other sector to improve was footwear and leather, with a balance of plus 64 per cent.

Falling sales were reported by retailers of hardware, china, DIY, furniture and carpets, but the decline in durable household goods was slower than the heavy falls seen in the past year.

Howard Archer, chief UK economist at IHS Global Insight, said: "The upside for consumer spending is limited by a number of factors, most notably sharply higher and rising unemployment, markedly reduced earnings growth and heightened debt levels."