High Street sales failed to pick up last month and the retail boom seems to be over, according to a leading business group.

The CBI's monthly survey said the expected acceleration in trading did not materialise, with sales continuing to grow at their slowest rate for 18 months.

Its survey showed 44 per cent of firms reported sales up on a year ago, while 28 per cent said they were down, giving a balance of plus 16 per cent, the same as June and lower than the plus 25 per cent in May.

The figures follow data from the Office for National Statistics earlier this month showing High Street sales fell for the second consecutive month in June, recording their weakest figure for more than two years.

Alastair Eperon, chairman of the CBI's distributive trades panel and a director of Boots, said: "The retail sales boom seems to be over. Despite continuing price cuts and stiff competition on the High Street, consumers are less willing to spend.

"Consumer confidence has been hit by worries over the impact of financial market volatility and uncertainty over house prices.

"There are increasing signs the global econom-ic recovery is fragile.

"The Bank of England can safely leave interest rates on hold. Firms need stability in order to make the recovery a reality."

The CBI said its three-month moving average, smoothing out month-to-month fluctuations, fell to its lowest level since December 2000 and firms were now less optimistic than last month.

The CBI said growth had weakened for grocers and for firms selling footwear, leather goods, confectionary, tobacco and newspapers. Booksellers and stationers reported the sharpest drop in sales.

Shops selling durable household goods continued to perform well.