Growth expected before Christmas
November's retail sales disappointed for the second month in a row, the CBI's latest Quarterly Distributive Trades Survey revealed.

However, growth is still forecast for December when a positive balance of 9 per cent of retailers expect sales to increase.

The study found that 25 per cent of retailers said November sales were up on a year ago, but 34 per cent said they were down. This balance of negative 9 per cent is the weakest since March, when it was 16 per cent.

The impact of higher energy costs for consumers have played a part in poor retail sales. Higher food prices - the result of a disappointing harvest - may also have an impact.

This month, year-on-year sales fell for footwear, leather and clothing shops, which can be linked to the mild weather. Overall, retailers expect business to remain stable over the next three months.

Asda executive director and CBI chairman John Longworth said: 'The survey shows a negative balance for retail sale growth during this month, which is clearly disappointing.

'But retailers are still looking forward to healthy sales growth during the busy Christmas period and are placing more orders with their suppliers, as reflected in wholesalers' positive sales growth.

'After two months of disappointment, retailers badly need the seasonal boost.'