RETAILERS are reporting that sales are still falling but are no longer feeling pessimistic about the coming months, the CBI said today.

Its Distributive Trades Survey found 34% of retailers had seen their volume of sales in the year to August rise, while 51% said they fell. The resulting rounded balance of -16% was similar to sales declines in the previous three months, and was better than expected (-23%).

Andy Clarke, chairman of the CBI Distributive Trades Panel, and chief operating officer of Asda, said: “These results round off a slow and disappointing summer for many in the high street, and the picture is not set to improve in September.

“Stock levels have been pared right back as retailers have adapted to weaker consumer demand.

“However, throughout the year retailers have become less and less negative about the business outlook, and that reflects increasing signs of stability in the wider economy.”

Sales for the time of year were reported to be poor by a net 25% of retailers, while the three-month moving average of sales volumes, which smooths out monthly peaks and troughs, remained as weak as in July (-16%).

Retailers cut their orders placed with suppliers at a faster rate than in the last two months (a balance of -22%), with a similar decline expected in September (-24%).

Quarterly questions revealed that employment conditions are tough within the retail sector, with a balance of 41% of firms reporting that they had reduced their headcount. This was noticeably more negative than in May (-29%) and a further decline in staff numbers is predicted in September (-36%).