The March Distributive Trades Survey will relieve some of the pressure on the Bank of England to cut interest rates after it found retailers were expecting conditions to improve again in April.

A total of 41 per cent of retailers reported increased sales compared with the same time the previous year, while 27 per cent said they were down.

This gave a positive balance of 14 per cent, the highest level since last September.

But Alastair Eperon, chairman of the CBI's Distributive Trades Survey Panel, warned that the picture was still "patchy" with some retail sectors continuing to see a downturn.

He said: "The willingness of consumers to spend remains rather weak and, together with the evidence of slowing wage and price pressures across the economy, supports the CBI's view that a further cut in interest rates should be made this week."

Chemists, grocers and shoe and leather shops reported the strongest increases in sales, while furniture and carpet retailers, confectioners and clothes stores reported a downturn compared with a year ago.

Specialist food stores, off-licences, booksellers and household goods shops also saw increased sales.

The three monthly average suggested sales were up only slightly from the previous year but showed the first sign of growth since last October.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.