RETAILERS in the South East experienced weaker sales in January than a year ago and business was below average for the season, according to the latest survey from the CBI.

The latest Distributive Trades Survey, which covers 20,000 retail outlets responsible for 40 per cent of employment in retailing, shows that 30 per cent of firms reported increased sales volumes on a year ago, whereas 33 per cent said they were down.

Retailers expect a small increase in sales in the 12 months to February.

Nigel Bourne, CBI's South East regional director, said: "January has proved slightly disappointing for many retailers, after the mixed performance in the run-up to Christmas.

"This illustrates the on-going slowdown in growth of consumer spending, and retailers expect the more modest pattern of sales to continue in coming months.

"However, it is always difficult to judge the underlying trend in the wider economy from activity over the Christmas period, so the Bank of England is likely to want more evidence before changing its stance on interest rates."