mpc: 16 It remained hard to gauge the momentum in consumption growth, with only a limited amount of
new evidence coming to light since the Committee's February meeting. Retail sales had risen in
January following the fall in December. But the rebound had been modest and sales in the three
months to the end of January were unchanged on the previous three months. The February British
Retail Consortium
Retail Sales Monitor and
CBI Distributive Trades Survey were consistent with
moderate retail sales growth in February. The Bank's Agents had, however, reported some further
slowing, with contacts expecting retail sales values to be broadly flat. Total car registrations had fallen
further in February and private registrations had remained particularly weak. A large proportion of
new car registrations annually occurred in March and some manufacturers were reportedly discounting
in an attempt to boost sales. Overall consumer spending had grown more rapidly than retail sales in
2004 Q4 and the Bank's Agents had reported that non-retail consumer spending growth in hotels and
restaurants, for example had remained firm.
Make a comment: