And with many retailers saying that stocks were more than adequate despite the impending Christmas season, orders were predicted to fall further in November.

Only 32% of retailers said that sales were up on a year-on-year basis in October, compared to 36% who reported falling sales, a more negative outlook than in the previous month.

According to the report, some 23% reported that they already had enough goods on hand.

Most disagreed that sales were above average for the time of year.

Rate cuts needed

Expensive items are not selling well

And the CBI said the gloomy figures were a result of the continuing high interst rates.

"With the economy now clearly slowing down, the softening of retailers' confidence signalled by this survey reinforces the CBI's call for a 0.5% cut in interest rates today," said Alaister Eperon, chairman of the CBI Distributive Trades Survey.

The survey said that motor traders, furniture, carpet retailers and off-licenses showed the weakest sales, while chemists, booksellers and shoe shops were still enjoying an increase in sales volumes compared to a year ago.