Year-on-year retail sales fell markedly in April as poor weather and the early Easter added to the economic slowdown and dampened spending in the South East, according to the CBI.

Sales of big-ticket items, particularly those tied to the housing market, saw some of the biggest falls, according to the business organisation's latest Distributive Trades Survey.

Malcolm Hyde, CBI South East Regional Director, said: “There is no doubt that consumers are tightening their belts as the mood about the economy and its outlook worsens. The trend in recent months has been one of slowing growth and now we've seen a fall in sales volumes.

“The survey needs to be seen in the context of the timing of Easter this year and the poor weather, which have further dampened sales this month. Nevertheless trading conditions are challenging for retailers and sales are expected to fall again in May, albeit at a slower rate.”

The monthly snapshot of the high street showed that 52 per cent of retailers said sales volumes were down on a year ago compared to 25 per cent who said they were up. The rounded balance of –26 per cent, with a balance being the difference between the percentage of retailers reporting an increase and those reporting a decrease, was the weakest since November 2005. It is only expected to improve to -15 per cent in May, signalling further falls in sales volumes.

Unsurprisingly, half of retailers (53%) said sales for the time of year were poor while 15 per cent reported them as good. The balance (-38) is the weakest since November 1992 (-43).

But, the CBI said, while high street activity has certainly dipped as the economy has slowed, these results, surveying the first half of the month, need to be put into context.

In 2007, Easter fell in April and the country enjoyed a mini-heatwave, which helped lift the balance of retailers reporting year-on-year sales growth to its highest for three years. However in 2008, the four-day holiday weekend was in March and the weather was wet and windy, quashing shoppers’ desire to hit the high street.

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