HIGH street sales growth has slowed since the Christmas high - and is expected to weaken further, according to a new survey.

The monthly survey by the CBI showed year-on-year retail sales growth in January weakened against December.

Of those polled, 55 per cent said sales volumes were up in January against 16 per cent reporting a fall.

The balance of plus 39 per cent - calculated by subtracting those reporting a fall from those recording a rise - is below the plus 48 per cent recorded in December.

The January figure however was stronger than expected - based on replies from the previous months. The figure was forecast to be plus 19 per cent.

But firms expect a further slowdown in February with 40 per cent expecting sales volumes to be up compared with a year earlier, while 15 per cent expect a fall.

Ian McCafferty, chief economic advisor at the CBI, said: "Retail sales growth is still healthy but has slowed since the Christmas high. Retailers are expecting growth to slow further - orders placed with suppliers are weakening and wholesalers expect business will continue to be well below average.

"Until the global economy begins to pick up, the UK economy needs consumer spending to remain strong. With inflation low there are good arguments for a further rate cut to guard against the current uncertainty."

The Bank of England monetary policy committee will meet this week to make its monthly decision on rates.

Economists widely expect the Bank to keep the cost of borrowing unchanged for the third month in a row, at four per cent.

The CBI figures also showed that in January stores selling durable household goods, such as televisions, DVD players and domestic appliances recorded the biggest year-on-year sales growth.