Home Retail says a bit more pessimistic on outlook

LONDON (Reuters) - Home Retail (HOME.L), the country's biggest household goods retailer, said it had become slightly more pessimistic about prospects for consumer spending due to rising inflation and a reduced likelihood of interest rate cuts.

"Our consumer outlook view going forward, and by that I mean probably more into 2009, is probably slightly more pessimistic than it was," Finance Director Richard Ashton told reporters on Thursday.

Ashton also said he would be surprised if the flat first-quarter like-for-like sales performance at the firm's main Argos chain would get better over the rest of the year.

(Reporting by Mark Potter, Editing by Mike Elliott)