Dismal UK retail figures add to blues as Bank of England meets

* UK retail spending suffers biggest drop on record - BRC (Shanghai: 600466.SS - news)

* While plunge reflects Easter timing, BRC warns of weak

trend

* Figures add to downbeat run of data

* New Reuters poll shows BoE (Shenzhen: 000725.SZ - news) likely to hold rates on Thurs

(Adds reaction, graphic)

By Andy Bruce

LONDON, May 9 (Reuters) - Britain's consumer economy failed

to rebound in April after snowy weather kept shoppers at home

the month before, adding to downbeat data that make a Bank of

England rate rise this week unlikely.

In a latest sign of slow growth in 2018, retail spending

contracted by 3.1 percent year-on-year in April after a 2.3

percent rise in March, the British Retail Consortium (BRC) said

on Wednesday.

That marked the sharpest drop since records began in 1995.

While the plunge partly reflects the timing of the

sales-boosting Easter holidays -- which started in March this

year rather than April -- the BRC warned of a weak underlying

trend.

Marc Ostwald, market strategist at ADM Investor Services,

said the figures were "dismal".

British data have soured over the past month, suggesting the

economy has not yet recovered from a weak start to 2018 in the

manner most economists and BoE officials had expected.

A lack of clarity around Britain's terms of departure from

the European Union in less than a year, as well as a slowing

euro zone economy, are among reasons cited for Britain's

disappointing performance of late.

The BoE now looks unlikely to raise rates on Thursday,

according to a new Reuters poll of economists who have mostly

pushed back forecasts for a rate hike to August.

Adding to mixed signals, a survey of recruitment firms on

Wednesday showed demand for permanent staff grew at the weakest

pace so far this year during April, though growth in starting

salaries remained robust.

RETAIL "IN DISTRESS"

Looking at retail sales over the three months to April,

which smoothes out March's jump and last month's plunge, the BRC

said overall spending was up just 0.4 percent year-on-year.

That marked the third-worst reading since the global

financial crisis.

The BRC said the retail market was likely to remain

"extremely challenging". Earlier on Wednesday, baker Greggs

warned profit for 2018 was likely to disappoint, blaming

a dip in consumer demand.

Already this year Toys R Us UK, electricals group Maplin and

drinks wholesaler Conviviality (LSE: CVR.L - news) have filed for protection from

creditors.

"The retail industry is clearly in distress," said Richard

Lim, chief executive of consultancy Retail Economics.

Separately, payment card firm Barclaycard said consumer

spending -- which includes a broader range of purchases such as

holidays and eating out -- rose at an annual pace of 3.4 percent

in April after growing just 2.0 percent in the previous month.

Excluding the snow-hit March, April marked the weakest

increase in five months.

"The UK seems to be caught in a holding pattern, with people

still budgeting carefully," Barclaycard managing director Paul

Lockstone said.

(Reporting by Andy Bruce; Editing by Toby Chopra)