Press Release

For immediate release

Thursday18 December 2003

RetailSales Will Slow in 2004, IoD predicts

The latest Novemberretail sales statistics show consumers still want to spend, but point to aslowdown in the New Year, the Institute of Directors (IoD) said today. Thevolume of retail sales rose by 3.7% (year-on-year) in the three months toNovember, but month-on-month growth was just 0.1%.

Commenting on thefigures, Graeme Leach, Chief Economist at the IoD, said:

The latest figuresprovide good news for now, but with further interest rate rises to come earlynext year, we shouldnt expect the current year-on-year growth in retail salesto be maintained. However, theres no reason at present to believe retailspending will crash in 2004. Our assessment is that retail sales growth willslow to under 3% next year.

Ends 18.12.03 No.219

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Noteto editors

TheInstitute of Directors is a non-party political independent organisation witharound 55,000 members. In addition to its wide range of business services, theIoD provides an effective voice to represent the interests of its members togovernment and key opinion-formers. It also brings the experience of businessleaders to bear on the conduct of public affairs