Statistics from the Office for National Statistics show that retail sales growth has dropped by 3.9%, in the three months from April to June.
This is the largest fall since the department began collecting the statistics back in 1986.
As noted yesterday, the dearth of mortgages and the seizing up of the housing market is now negatively impacting the rest of the economy.
It beggars belief that the Bank of England and the Treasury are not pulling out all the stops to free up liquidity. Instead there is a possibility that the Bank will in fact raise interest rates next month.