by Calculated Risk on 5/31/2005 09:00:00 PM

UK's retailers suffered their third consecutive month of declining sales, according to the Independent.

'...the CBI said retailers suffered their third successive monthly fall in sales - making it the worst quarter since the early recession of the early Nineties.

There was a further blow for retailers from a survey showing the Bank Holiday weekend provided a lacklustre kick-start to half-term holiday trading. John Butler, the UK economist at HSBC, said: "Households no longer intend to make a major purchase. The big-ticket durable boom is over along with the boom in mortgage equity withdrawal."'

More from the Independent:

'The CBI survey, which covered 226 companies representing four out of 10 shops across the UK, said the number reporting a fall in sales compared with a year ago outweighed those seeing a rise by 7 per cent. This was an improvement from the balance of minus 14 per cent in April but left the rolling three-monthly average at its lowest level sinc e August 1992.

FootFall said the number of visitors to Britain's major shopping centres over the three-day weekend was 1.3 per cent lower than a year ago, driven by a 7 per cent slump in footfall on Monday.'

For more on the UK retail slump:

Times: Retailers expect slowdown to stay for summer

Financial Express: ‘UK retail sales fell again in May’

"Broadly speaking, the categories of goods most closely correlated with housing transactions have fared worse than the average over the past year," said John Longworth, executive director of ASDA and chairman of the CBI's survey panel.

Retail Week: Retail sales fall for the third month

Asda executive director and chairman of the CBI's DTS panel John Longworth said: “Sales volumes improved between April and May, but volumes remain a little lower than a year ago and prices are on a downward trend.”

"Sales of groceries, books and stationery are up on a year ago, but those of big ticket items, furniture, carpets, DIY goods and clothing are down,” he added.

It is possible that the UK is leading the US into an economic slowdown. On Angry Bear I presented a chart showing that the US Fed rate increases are about 6 to 8 months behind the BoE. In the UK it started with a housing slowdown and has now moved to retail.