October’s retail like-for-like sales in Central London rose 11 per cent, bolstered by overseas shoppers, according to the BRC.

This is a good gain on the 15.8 per cent year-on-year increase in October 2006, when sales were recovering from the July 2005 bombings.

Retail footfall slowed, but remained above last year’s level and stronger than the decline in the UK as a whole, according to footfall monitor SPSL.

Clothing and footwear sales slowed again in the mild weather, although designer fashions and accessories continued to outperform. Premium beauty products remained sturdy, but furniture and homewares were slower, with larger purchases affected by consumer caution.

BRC director-general Kevin Hawkins said: “The sharp slowdown in sales growth in the UK as a whole has yet to have its full impact in London. While the weak dollar has meant fewer Americans, spending less, European visitors – who now get more pounds for their euros – are compensating. But much of London’s sales growth has been in high-end, luxury goods; other goods have performed less well.

“Londoners’ higher average earnings may slow the pace, but London retailers are unlikely to entirely escape the effect of the squeeze on disposable incomes in the run-up to Christmas.”