Dixons is continuing to suffer from the effects of weak consumer spending in the UK and remains "cautious", the high street electricals giant said today.

Publishing figures for the 16 weeks trading to August, the retailer revealed that like-for-like sales in the UK were down 3 per cent, hit hard by a dip in demand for items such as washing machines and fridges.

But the retailer is also under pressure from falling hardware prices for computers and communications kit.

The bright spot for Dixons came from its expanding overseas operations where it saw sales rise 5 per cent on a like-for-like basis.

Speaking ahead of the company's AGM chief exec John Clare said that the summer was usually a quiet period for the firm and that it was too early to read too much into the trading update.

Faced with what he described as a "relatively challenging period", he pledged to continue to drive sales while keeping a lid on costs.

"We are pleased with the progress of our International operations, whilst we remain cautious about prospects in the UK, where we have experienced the slowdown in consumer expenditure," he said.

By coffee break this morning shares in Dixons were up 2.79p (2 per cent) at 156.75p. ®