High street sales continue to flourish in December as shoppers buy ahead of next month’s VAT increase according to the CBI Distributive Trades Survey.

The latest survey showed strong growth in the first half of December. Some 67% of retailers polled said that year-on-year sales were up with just 11% reporting lower sales giving a positive balance of 56%.

This is the highest growth figure since April 2002 (+57%). CBI’s survey has recorded six consecutive months of strong sales figures.

Hardware and DIY, clothing, department stores and grocers were the top performers.

Despite continuous strong sales retailers anticipate slower growth next month with a positive balance of 35% expecting sales to be higher year-on-year.

CBI chief economic adviser Ian McCafferty said: “Sales on the high street continued to rise strongly compared with a year ago, reflecting a stronger crucial pre-Christmas trading period. However, December’s strong survey balance is also likely to capture spending being brought forward, ahead of the January increase in VAT.

“Indeed, retailers expect sales growth to lose some momentum in the New Year. We remain cautious about prospects for the retail sector further ahead, given ongoing uncertainty over the resilience of consumer spending.”

The survey showed wholesale was more difficult with only 19% of wholesalers seeing an increase in year-on-year sales compared to 31% reporting a fall, giving a negative balance of 13%. Wholesalers are more optimistic about next month with a positive balance of 25% expecting sales to be higher in January than a year ago.