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Retail sales 'fall still further' Retail sales 'fall still further'
(about 3 hours later)
Total UK retail sales have fallen in consecutive months for the first time in at least 13 years, a closely-watched survey has said.Total UK retail sales have fallen in consecutive months for the first time in at least 13 years, a closely-watched survey has said.
Sales in November were down 0.4% from a year earlier, said the latest British Retail Consortium-KPMG retail survey.Sales in November were down 0.4% from a year earlier, said the latest British Retail Consortium-KPMG retail survey.
Following a 0.1% decline in October, it was the first drop in overall sales for two months in a row since the survey was first released in January 2005. Following a 0.1% decline in October, it was the first drop in overall sales for two months in a row since the survey was first released in January 1995.
The report said retailers were now facing a "nerve-wracking Christmas". Separately, figures on Tuesday showed manufacturing fell sharply in October.
And property sales fell even further in November, according to a survey by the Royal Institution of Chartered Surveyors.
New shops
The BRC report said retailers were now facing a "nerve-wracking Christmas".
However, BBC correspondent Nils Blythe said the BRC figures "give only modest support to the view that a savage downturn on the High Street is already under way".However, BBC correspondent Nils Blythe said the BRC figures "give only modest support to the view that a savage downturn on the High Street is already under way".
On a like-for-like basis - which pulls out the impact of new store openings and closures - the survey found that sales in November were down 2.6%.On a like-for-like basis - which pulls out the impact of new store openings and closures - the survey found that sales in November were down 2.6%.
There is little doubt that Christmas will arrive late for many retailers, leaving them with a very nerve-wracking couple of weeks to come Helen Dickinson, KPMGThere is little doubt that Christmas will arrive late for many retailers, leaving them with a very nerve-wracking couple of weeks to come Helen Dickinson, KPMG
This was the sixth month in a row to see like-for-like sales decline, but our correspondent said the fall in sales "partly reflects the large number of new shops" that were opened this year.This was the sixth month in a row to see like-for-like sales decline, but our correspondent said the fall in sales "partly reflects the large number of new shops" that were opened this year.
Total sales were up 2% in November when the figures are measured on a 12-month moving average.Total sales were up 2% in November when the figures are measured on a 12-month moving average.
'Food sales up''Food sales up'
The British Retail Consortium said food and drink was the only sector to see sales rise last month, lifted by continuing heavy discounting by the supermarkets.The British Retail Consortium said food and drink was the only sector to see sales rise last month, lifted by continuing heavy discounting by the supermarkets.
It added that it hoped the cut in VAT from 17.5% to 15% would now help to lift sales.It added that it hoped the cut in VAT from 17.5% to 15% would now help to lift sales.
"There is little doubt that Christmas will arrive late for many retailers, leaving them with a very nerve-wracking couple of weeks to come," said Helen Dickinson, head of retail at KPMG."There is little doubt that Christmas will arrive late for many retailers, leaving them with a very nerve-wracking couple of weeks to come," said Helen Dickinson, head of retail at KPMG.
For retailers, Christmas is a key trading period and for some firms it can represent more than three quarters of annual revenues. For retailers, Christmas is a key trading period and for some firms it can represent more than three-quarters of annual revenues.
As High Street firms such as Woolworths enter administration, there are fears that other firms could see a similar fate.As High Street firms such as Woolworths enter administration, there are fears that other firms could see a similar fate.
Stephen Robertson, the BRC's director-general said: "The numbers speak for themselves - these are clearly tough times."Stephen Robertson, the BRC's director-general said: "The numbers speak for themselves - these are clearly tough times."
But he added that it was hoped the "extraordinary" number of discounts and promotions would encourage some shoppers to spend more.But he added that it was hoped the "extraordinary" number of discounts and promotions would encourage some shoppers to spend more.
Wider slowdown
Meanwhile, separate data on Tuesday showed a slowdown in manufacturing output for October.
Output for the month declined 4.9% compared to the same period a year before, or 1.4% on a monthly basis, the Office for National Statistics said.
And industrial production was 5.2% lower for the month year-on-year - the largest such drop since April 1991.
Analysts said such figures indicate that the economy will slow further in the last quarter of this year and during the beginning of 2010.
"We look for GDP to contract close to one percent in the fourth quarter of 2008 with a similar outcome for the first quarter of 2009," said James Knightley, an economist at ING.
"Consequently, the Bank of England has more work to do with a growing likelihood that UK rates will eventually get down to zero."
The Bank of England recently reduced interest rates to their lowest level in more than half a century - to 2% - in a bid to boost growth as fears intensify over a recession.
Also underlining the weak state of the economy, figures released on Tuesday from the Royal Institution of Chartered Surveyors (Rics) showed a drop in house sales in the three months to November .
The number of sales per estate agency dropped to 10.6, representing the lowest level since Rics started the survey in 1978.

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