UK retail sales unexpectedly steady in March -CBI

British retail sales steadied in March, a survey indicated
on Thursday, defying expectations of a decline as the credit crisis feeds
through to households.

The Confederation of British Industry said its distributive
trade survey’s reported sales balance rose to +1 from -3 in February.

Analysts polled by Reuters had forecast a reading of -5 and
retailers had expected a balance of -2. They are still expecting sales to fall,
however, with the expectations balance easing to -3.

“This month’s survey has borne out retailers’
expectations that the strong growth in 2007 has come to an end,” said Ian
McCafferty, economic adviser to the CBI. “The picture now is of subdued
activity as consumers tighten their belts.”

However, official data has reflected a surprisingly sturdy
performance on the high street and Bank of England chief economist Charles Bean
said on Wednesday that January and February retail sales had been strong.

Durable goods sales were particularly hard hit, the CBI
said, perhaps in response to a slowing housing market. They posted their fifth
month of falling sales with the balance at its lowest since October 2005.

Europe’s biggest home improvements retailer Kingfisher said
on Thursday it would give less cash back to its shareholders and cut spending
plans due to a tougher environment.