SAINSBURY'S sent a jolt through shares in the supermarket sector today after it revealed a bigger-than-expected slowdown in sales growth.

The 1% rise in quarterly like-for-like sales was lower than market forecasts and sharply down on the 3.6% jump seen in the previous three months.

Shares in Sainsbury’s fell 5% or 16.25p to 338.05p while rival Tesco slumped 9.1p to 369.9p as further evidence of the current squeeze on consumer spending caused the FTSE 100 Index to fall 15 points to 5747.9.

The disappointing performance by one of its biggest advertising customers added to the pressure on broadcaster ITV after it was the subject of a ratings downgrade from broker Jefferies. Shares were 3.2p lower at 81.5p.

On a brighter note, airport scanners and medical devices group Smiths rose 1% after it overcame contract delays in its detection business to post a 25% rise in half-year profits. With Smiths confident of meeting expectations for the full-year, shares rose 14.5p to 1321.5p.

And Rank Group added another 4% on top of the 14% rise seen yesterday after it announced a bigger-than-expected rebate from the taxman.

The Mecca bingo firm has been repaid £74.8 million in tax dating back to between 1973 and 1996 by HM Revenue & Customs and is also due to receive a further £79.5 million in interest later this month. Shares were 6.75p higher at 153.75p.