THE embattled retail sector will remain in focus this week when Marks & Spencer reports on recent trading, while restaurant chain Prezzo will also shed light on consumer conditions.

Marks & Spencer is expected to add to evidence of a sharp slowdown in consumer spending on Wednesday when the retailer posts its fourthquarter trading update.

Companies such as Next, Currys and PC World owner Dixons Retail and Argos parent Home Retail Group have reported disappointing growth since the festive season.

M&S bucked the trend over Christmas and traded well while many of its rivals were hit by the severe weather.

But analysts have forecast a decline in like-for-like sales of 2.5 per cent in the 13 weeks to April 2.

Pizza and pasta restaurant chain Prezzo will reveal whether January’s VAT rise and the soaring cost of food has affected its recovery when it announces full-year results on Wednesday.

Like many in the leisure sector, Prezzo saw its profits hit by the recession as it was forced to put on more promotions to compete for trade.

It scaled back restaurant openings as profits stalled, but a strong performance in its half-year results gave it the confidence to announce that it was back in growth mode.

There are fears of further gloom from the retail sector on Thursday when car parts and bicycle group Halfords reports back on trading.

The group, which has 464 stores in the UK and Ireland, had a disappointing Christmas season for cycle sales, which slumped 16 per cent on a like-for-like basis.

The company said it was hit as fewer bikes were given as presents and premium products were affected by a slowdown in Cycle-to-Work sales.

Declining sales look likely to continue in the fourth quarter to April, with economists forecasting a two per cent decline in like-for-like sales across the whole group.

Further signs of a recovery in the recruitment market are expected to be revealed when Hays and Robert Walters provide trading updates.

The industry suffered in the recession as companies reduced their manpower, but recruitment companies are making a comeback after making their own efficiency savings and as the private sector jobs market picks up.

Hays is expected to report further strong growth when it updates on third-quarter trading on Thursday.

The company said underlying profits increased 48 per cent to £52.1m in its half-year, while net fees rose 23 per cent to £326.1m as its overseas markets showed rapid expansion.

Rival Robert Walters is also expected to report another robust performance when it updates on its first-quarter trading on Wednesday. Analysts expect a strong update.