Retail sales fall in May

According to The Office for National Statistics (ONS), retail sales volumes in May were 0.6% lower than in April and 1.6% lower than in May 2008, the BBC reports.

Analysts believe that although retail sales have held up well so far this year, the impact of wage freezes and growing unemployment was putting pressure on consumers and their spending habits.

Clothing and footwear shops saw volumes decline by 1.9% over the month, while shops in sectors such as photography and sports reported a 3% fall in sales volumes.

Vicky Redwood of Capital Economics said: "We wouldn`t be surprised if this marked the start of a period of rather weaker sales growth than of late."

A spokesperson for debt management company Gregory Pennington commented: "Falling sales can certainly be a sign that people have less disposable money. However, a lot of people will be spending less because they`re determined to protect themselves from potential future debt - or to repay existing debts."

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