Sales on British high streets fell for the sixth month in a row in September but retailers reported that conditions had improved since August.

Some 48 per cent of retailers said that the volume of sales was lower in the first half of the month than in the same period last year, while 21 per cent said sales had risen, a survey by the CBI shows. The resulting balance of -27 per cent is up from -46 per cent in August, and better than the companies had predicted.

However, retailers expect conditions in October to remain challenging, with a balance of -30 per cent predicting that sales will fall.

John Cridland, deputy director-general of the CBI, said: “Sadly, there has been no Indian summer after the sales washout of August and the retail outlook for early autumn remains bleak. Consumers are feeling the brunt of the economic slowdown as the UK endures what is likely to be a short and mild recession."

Stores selling durable household goods, such as fridges and freezers, were particularly hard hit, with a balance of -84 reporting falling sales, although this was an improvement from last month's balance of -100. But chemists suffered a sharp slowdown in activity, with a balance of -80 this month, down from -56 in August.

However, supermarkets are bucking the trend with 37 per cent more stores reporting rising, rather than falling, sales. This is up from 7 per cent in August.

Andy Clarke, chairman of the CBI distributive trades panel and retail director of Asda, said: "Retailers of big ticket items, like furniture and white goods, which are closely tied to the ailing housing market, continue to suffer. Supermarkets have fared much better in these difficult times, particularly those that have realigned their range to match the price conscious."

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