UK Carpet Sales Way Down, Prices Rising

London, England, June 2, 2008--Furniture and carpet sales fell 84 percent in the UK this month compared with last year according to the Confederation of British Industry’s monthly Distributive Trades Survey.

Activity dropped for the second consecutive month, with 42 percent of businesses reporting a drop in sales volumes and 28 percent reporting an increase. On balance, sales volumes were down 14 percent, a better picture than last month where sales volumes decreased 26 percent.

Conditions are expected to improve next month and the CBI is forecasting a 6 percent rise in sales volumes.

CBI chief economic adviser Ian McCafferty said: "It is encouraging that retailers can see some recovery in sales next month, but they are not optimistic about the business outlook, and retail conditions are likely to remain tough. Sales are falling in sectors closely tied to the housing market, such as those selling furniture and white goods."

Retail prices in May rose at the fastest rate since 1992 with 56 percent of retailers reporting an increase. A similar figure of 52 percent was forecast by the CBI for June.