FTSE 100 flat as CBI reveals sales growth slowed in December

<p>The FTSE 100 is flat as the CBI reports slow sales growth in the UK this month.</p>

The FTSE 100 is flat at 5964.4 points in trading this morning (December 20th), after it was revealed retail sales growth in the UK has slowed in December.

According to the Confederation of British Industry's (CBI) monthly Distributive Trades Survey for the first two weeks of December, more than one-third (36 per cent) of shops reported an increase in volume of sales compared to one year ago, while 17 per cent posted a decrease.

The resulting balance is 19 per cent, which is not too far off the 21 per cent long-run average, but failed to match increases in sales volumes recorded in October (33 per cent) and November (30 per cent).

Sales growth is anticipated to continue to lose momentum in January, as retailers anticipate a sluggish start to the year.

CBI head of economic analysis Anna LEach commented: "Weak spending power and uncertainty over the economic outlook are likely to remain key risks to the retail sector in 2013."

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