Sales up but tough times ahead

High street sales rose slightly in November but the long-term view for the economy remains less positive.

Figures revealed by the British Retail Consortium showed that like-for-like sales increased by 1.2% on October's figure, which was an 18-month low.

But three-month figures showed a fall from 2% to 1.8% and there are fears that spending will slow down still further after the Christmas period.

Consumers have been hit by a succession of interest rate rises in the past 18 months and are now feeling the effects of the credit crunch, with banks no longer prepared to lend money to high-risk customers.

Many analysts are expecting the Bank of England to cut interest rates when it meets later this week.