Furniture giant MFI signalled it was finally beginning to feel the pinch from slower consumer spending.

Sales in the group's UK retail arm were up 7.1 per cent in the 45 weeks to November 9 on a like-for-like basis, which excludes income from new stores.

That compares with a 9.7 per cent climb in the first half of the year as MFI said volumes in the furniture market were growing at a slower rate.

Total sales across the business, which also includes the French Hygena Cuisines arm, were still up 19.3 per cent in the 45-week period at £1.12 billion.

But MFI's shares dropped four per cent following the announcement as analysts said the figures showed the spending boom was running out of steam.

MFI bought The Sofa Workshop, based in Petworth, last week in a £12.3 million deal to support its expansion plans. It also wants to increase its trade business Howden Joinery by 50 per cent in the UK over the next three years.

Iain McDonald, retail analyst at Numis Securities, said: "The bottom line is like-for-like sales are slowing down."

MFI said it expected consumer spending to slow when reporting a near 14 per cent rise in interim pre-tax profits four months ago.

Finance director Martin Clifford-King said the sales growth over the 45 weeks was still a good performance.

He said: "The projections for the economy are fairly benign, the next interest rate move may be down and unemployment is still low."

MFI has been introducing bathroom and sofa ranges into out-of-town stores in line with a strategy to provide furniture for every room in the house.

So far, 68 of the group's 192 out-of-town stores have been refurbished and Mr Clifford-King said the sales uplift was about 25 per cent.

The next intensive refurbishment period will fall between April and August next year and the programme is expected to be completed by the end of next year.