MFI, the do-it-yourself furniture retailer, has joined the chorus of bad news emanating from the high street, reporting a 15 per cent fall in orders at its British retail business since the end of the half-year.

As it released a trading statement covering the eight months to the beginning of September, MFI reported a 7 per cent fall in underlying sales in the UK, with total orders down 6 per cent compared with the previous year.

"Since the commencement of the second half we have experienced a deteriorating market place, with associated increased volatility," MFI said as it reported a 1 per cent fall in underlying sales.

Net orders for the period increased by 1 per cent.

Shares in MFI shed 9p to 110.25p - a fall of more than 7.5 per cent in a flat wider market and on slim trading of about 5 million shares in early dealing.

At last night's close MFI was valued at more than £740 million.

Reporting its sales progress on a day when the Bank of England is expected to leave interest rates unchanged at 4.5 per cent, MFI's sales woes follow those of electrical retailer Dixons, which yesterday reported a disappointing 7 per cent slide in underlying sales in the UK.

Dixons was particularly hit by a 28 per cent drop in sales at its Link mobile phone outlets.

Like other retailers that have reported sharp falls in sales figures this year, Dixons blamed the downturn in consumer sentiment in part for the decline.

The lack of consumer confidence has prompted lobby groups including the British Retail Consortium, which represents the interests of Britain's retailers, to call for a further cut in the cost of borrowing when the Bank meets today.

However, most City economists are confident that the Bank will leave rates on hold after its widely expected 0.25 per cent cut at last month's meeting.

For MFI, led by chief executive John Hancock, sales at Howden Joinery did provide some good news, increasing by 8 per cent on an underlying basis in what the retailer described as a "challenging market environment". Total sales at Howden were up by 10 per cent.

MFI also reported improvements to its supply chaing.

"Following the further modifications to the IT systems undertaken in the early summer, the supply chain continues to perform reliably, leading to improving levels of delivery execution and customer service," it said.

And like increasing numbers of its British peers with international businesses, MFI noted a healthy improvement in its French retail outlets Hygena Cuisines, with total orders up 11 per cent and underlying sales up 7 per cent on the same period last year.

Times Recommends

• Brown targets fat cats after nationalising banks
• US shares soar on global banking rescue
• Europe follows Brown to head off meltdown