LONDON, June 7 (Reuters) – UK retail sales fell unexpectedly
in May and house prices lost ground in the spring, surveys
showed on Tuesday, as low wage growth and worries about the
economy led consumers to tighten their belts.

The readouts added weight to concerns that Britain’s
recovery is struggling to gain traction just as a far-reaching
government austerity programme kicks in, and they should deter
the Bank of England from raising interest rates from record lows
any time soon.

LONDON (Reuters) – The service sector grew at its slowest pace for three months in May, as public holidays held back activity, stoking worries that the economy’s sluggish start to the year has persisted into the second quarter. The Market/CIPS headline services PMI index eased to 53.8 last month from 54.3 in April, the lowest reading since February and below the 54.1 consensus forecast.

The slowdown was blamed on weak consumer spending and four public holidays that fell during the mid-April to mid-May period covered by the poll.

LONDON (Reuters) – The construction sector grew faster than expected in May and added jobs for the first time in nearly a year, offering a chink of light in what has become a generally sombre outlook for the economy.

Thursday’s Markit/CIPS headline construction PMI index rose to 54.0 in May from 53.3 in April, beating forecasts for a reading of 53.6 and giving sterling a boost.

LONDON (Reuters) – Manufacturing activity grew at its slowest pace in 20 months in May, and weaker export and consumer demand led to the first drop in new orders in two years, fuelling fears about the pace of the recovery.

The Markit/CIPS manufacturing PMI headline index, published on Wednesday, fell to 52.1 last month from a downwardly revised 54.4 in April, well below the 54.1 consensus forecast.

LONDON (Reuters) – Manufacturing activity grew at its slowest pace in 20 months in May, and weaker export and consumer demand led to the first drop in new orders in two years, fuelling fears about the pace of the UK recovery.

The Markit/CIPS manufacturing PMI headline index, published on Wednesday, fell to 52.1 last month from a downwardly revised 54.4 in April, well below the 54.1 consensus forecast.

LONDON (Reuters) – Britain’s economy made a sluggish start to the year as an improved trade performance was more than offset by the sharpest fall in household spending since the recession, a second estimate of gross domestic product showed on Wednesday.

The figures highlight the challenge facing the government as it tries to rein in Britain’s budget deficit and will reinforce expectations that UK interest rates will stay at record lows for some months to come.

LONDON (Reuters) – The economy made a sluggish start to the year as an improved trade performance was more than offset by the sharpest fall in household spending since the recession, a second estimate of gross domestic product showed on Wednesday.

The figures highlight the challenge facing the government as it tries to rein in the budget deficit and will reinforce expectations that interest rates will stay at record lows for some months to come.

LONDON (Reuters) – Retail sales grew more slowly in May, although they beat expectations, and firms are cautious about the outlook for growth next month, a survey by the Confederation of British Industry showed on Tuesday.

The figures came as Bank of England policymaker Paul Fisher said he was “nervous” about the strength of household demand against a backdrop of falling real wage growth, and said it was too early to contemplate raising interest rates.

LONDON (Reuters) – Libya’s rebel forces need their international allies to supply them with more weapons if they are to make a breakthrough in their fight against Muammar Gaddafi, rebel leader Mustafa Abdel Jalil said on Thursday.

The United Nations imposed an arms embargo earlier this year on Libya, meaning the rebels’ allies would have to exploit loopholes in the sanctions regime or secretly circumvent it if they wanted to supply weapons.

LONDON (Reuters) – The number of homes repossessed by lenders across the country rose in the first three months of the year, ending five consecutive quarterly declines, industry figures showed on Thursday.

The figures chimed with government data showing a rise in the number of court possession orders in suggesting that public sector cutbacks and squeezed household budget were taking an increasing toll.