According to the October CBI Distributive Trade Survey, 33 per cent of retailers reported a drop in year-on-year sales in the first half of October, against 42 per cent that said sales were up.
The rounded balance of 10 per cent is the weakest since November last year and, for the third month in a row, below the long-term average of 18 per cent, indicating that the impact of five interest rate rises in a year is now being felt by consumers.
Sales growth was mixed over the sectors. Clothing retailers again reported a drop on 12 months earlier, with sales falling for five consecutive months. However, after five months of negative figures, sales of durable household goods increased.
John Longworth, chairman of the CBI's Distributive Trades Panel and executive director at Asda, said: “The high street has seen another month of slower growth in retail sales and, although some retailers are doing better than others, it is clear that the buoyant trading period enjoyed earlier this year has tailed off.
“Although slightly better sales are expected in November, retailers' hopes have been disappointed for the past few months and they anticipate only subdued growth in the important run-up to Christmas,” he added.
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