Alex Kerr, economist at the consultancy Capital Economics, said the fall in retail sales would have detracted from growth in the fourth quarter. The fall reduced the level of GDP by 0.039 percentage points in the quarter, he added, but he still expected the economy to have registered no growth rather than contracted in the period. “Either way, the economy is weak and had no momentum at the end of last year,” said Kerr. Thanks to expected growth in household income, “we doubt the economy’s recent malaise will continue,” he added.