Sales growth in central London has slowed by more than half compared with the same period last year, but continues to outstrip the rest of the UK.

Sales in London grew 6.2 per cent last month compared with July last year, according to the BRC-KPMG London Retail Sales monitor.

The growth is the lowest since April and compares with a 12.9 per cent sales increase in July last year.

Despite the slowdown, central London is still ahead of the country as a whole. Sales in July nationwide dropped 0.9 per cent like-for-like compared with the same month last year.

BRC director-general Stephen Robertson said: “London retailers continue to outperform their UK counterparts, buoyed in July by tourists, discounts and the central London economy holding up better than the country.

“But factors affecting other parts of the UK, such as falling house prices and the squeeze on incomes, are starting to impact the capital, hitting sales of more expensive house related goods.”