Growth in the UK economy is slowing, according to surveys from the British Chambers of Commerce (BCC) and The British Retail Consortium (BRC).
The BRC said retail sales growth slowed last month, with like-for-like sales up 0.5% from a year ago. This is half the 1% growth rate the monthly BRC survey reported for August and the organisation said consumer confidence is ‘fragile'
"We've now had six straight months of low growth thanks to persistently weak consumer confidence and worries about the future," Stephen Robertson, director general of the BRC.
The BCC survey found that the service sector was struggling - particularly worrying given that this is occurring before January's VAT increase to 20%.
The government is due to outline its four-year spending review on 20 October. This will provide details about where spending cuts will be made as the government it continues to seek to reduce the UK's record peacetime deficit.