UK retail sales expand in April at fastest pace since September 2015 - CBI

LONDON (Reuters) - British retailers reported the biggest increase in sales volumes since mid-2015 during April, according to an industry survey on Thursday that may help to allay fears of a worsening consumer-led slowdown. The Confederation of British Industry's monthly retail sales balance spiked to +38 from +9 in March, confounding expectations for a decline to +6 in a Reuters poll of economists. The upbeat figure contrasted with official data that showed retail sales posted their biggest quarterly fall in seven years in the first quarter of 2017, reinforcing economists' view that household spending, the main driver of the economy, is now slowing sharply. The CBI said the strength during April was notable because the survey of 57 retailers did not cover the Easter holidays, one of the most important shopping periods of the year. However, the CBI's retail balance has been volatile from month to month recently. "Retailers are still cautious over the outlook, expecting slower growth over the year to May, as higher inflation eats into household spending," CBI economist Ben Jones said. "With price competition remaining fierce and rising costs squeezing margins, retailers face mounting pressures in the months ahead." The CBI said retailers expected sales growth to slow next month, with the index falling back to +16. (Reporting by Andy Bruce, editing by David Milliken; ((andy.bruce@thomsonreuters.com; +442075423484; Reuters Messaging: andy.bruce.thomsonreuters.com@reuters.net)))