Interest rates 'hit retail sales'
UK retail sales growth rose 1% year on year in October, their weakest growth since November 2006, figures from the British Retail Consortium (BRC) show.
Director general Kevin Hawkins put the weak data down to the effect of "higher mortgage interest rates and other pressures" on household incomes.
But food and drink sale grew, aided by Halloween, religious festivals and Rugby World Cup sales opportunities.
Meanwhile, the three-month growth rate fell to 2.0% from 2.1% in September.
Total sales, which includes growth in retail floor space, were up 3% on the year, and 3.9% across the three-month period.
'Challenging'
Despite that, experts continue to warn that recent credit market worries and high interest rates could lead to the consumers continuing to tighten their purse strings.
"It points to some challenging trading conditions for many retailers in the run-up to Christmas, which are likely to persist until interest rates are reduced and consumer confidence begins to improve," said Mr Hawkins.
And the BRC report also said that by cutting Christmas food prices early retailers were already fighting to provide value for money.
'Big ticket' caution
The mild weather also hit clothing and footwear sales in October.
Furniture and homeware sales slowed but health and beauty items "held up well".
And consumers were more and more cautious about making major households purchases, the BRC said.
The report comes a week after business body, the CBI, said growth in sales on the High Street was continuing to slow as retailers started to feel the pinch.
Source: bbc.co.uk
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