THE situation on the high street appears to be worsening according to the CBI after it released figures which showed the fastest year-on-year sales decline in its 22 year history.

For the second time this year the survey has hit a record low. It is also the fourth month in a row that sales are well down on the same time a year ago.

Half the retailers questioned for the CBI's Monthly Distributive Trades Survey, which covers 20,000 retail outlets responsible for 40 per cent of employment in retailing, said September sales volumes were down on a year ago, compared to only 26 per cent who said they were up.

As a result the retail industry is at its weakest in the survey's history. The expectations for October are equally gloomy.

Malcolm Hyde, CBI South East regional director, said: "There was no let up for retailers during September. Margins are being squeezed further as prices are cut and fuel prices rise.

"The reluctance of consumers to spend money is probably due to a variety of factors including higher fuel bills, a reluctance to incur debt and the slowdown in the housing market.

"With only three months to go until Christmas retailers will be pulling out all the stops to get shoppers back into the high street and spending money."