Retailers' expectations that growth would continue to pick up were dealt a blow in June, as sales growth remained weaker than the mean balance of the past decade for the eighth successive month.
This disappointing trend has led retailers to scale back their expectations for sales growth. Sales in June were viewed as average, which has caused concern, as they were above average in May for the first time in six months.
Alastair Eperon, chairman of the CBI's Distributive Trade Panel, said: 'Consumer spending should have been much higher when compared with June 2002 when high street spending suffered as a result of the Jubilee Bank Holidays, late half-term, and the World Cup. With growth continuing to slow in July, there is nothing in this survey to stop the Bank of England cutting interest rates next week.'