Retail sales growth in the UK slowed sharply in March from the previous month as consumers reined in spending as the US and UK prepared to invade Iraq. Retail sales rose 0.3pc in April from March and were up 2.7pc from a year earlier. Although the month-on-month growth in April edged past the 0.2pc figures expected, it still marked a sharp slowdown from the 0.6pc recorded in the previous month. The year-on-year gain was the smallest since May 1999.
Consumer spending helped keep the British economy afloat in the first quarter of the year, but four of the Bank of England's nine policymakers expressed concern this month that household spending growth could ease more than anticipated this year. The four wanted to cut UK interest rates by 0.25pc in response to this slowdown, but the five other central bank members voted against the move, according to the minutes of the bank's most recent policy meeting. For the first quarter as a whole, retail sales were revised down to show no change from the previous quarter. Previously, quarter-on-quarter growth was estimated at 0.1pc. This downward revision could affect revised GDP growth figures for the quarter, to be released tomorrow. //www.fxcentre.com