Price cuts pull in High Street shoppers

High Street sales survived this month's VAT rise as retailers prised open shoppers' wallets by slashing prices in the sales, the CBI said today.

The first snapshot of consumer health this year found a 37% balance of firms reporting higher volumes than a year earlier, in line with expectations, but the CBI also warned of slowing growth ahead.

Chief economic adviser Ian McCafferty said: "Consumer demand is expected to be weak in the coming months."