High street sales volumes fell again in June, according to the latest CBI Distributive Trades Survey, but the rate of decline was slower than expected.
More than a third of retailers surveyed (34%) reported a rise in sales volumes during the first two weeks of June, compared to the same time a year ago, while 39% reported a fall. That resulted in a balance of -5%, an improvement on the predicted balance of -15% and better than May's unexpectedly weak balance of -18%.

The decline in sales was led by footwear and leather, followed by hardware, china and DIY.

The three-month moving average of sales volumes was marginally negative (-3%), after remaining positive for seven consecutive months, while a net 11% of retailers describes sales as poor for the time of year.

Looking ahead to next month, the CBI said sales are expected to recover some ground, with a balance of 11% of retailers expecting volumes to be higher than a year ago, helped by the World Cup. However, a net 8% of retailers still expect sales to be poor for the time of year.

CBI chief economic advisor Ian McCafferty said: "Retailers are hopeful that sales will strengthen next month. As the survey pre-dates the Emergency Budget, news that the feared rise in VAT will not take effect until next January may well also encourage some advance spending over the second half of the year."