RETAILERS received no let-up from the high street spending slump last month as sales volumes fell for the eighth month running, a key survey showed.

Employers' body the Confederation of British Industry said the pain felt by retailers was now spreading to the wider economy, putting pressure on wholesalers and manufacturers.

According to the CBI's Distributive Trades Survey, 42 per cent of retailers questioned said their sales were down on the same time last year, while 24 per cent said they were up. The CBI also said retailers expected the rate of decline to slow in the run-up to Christmas.

It came as another gloomy study showed the number of people entering UK stores fell to the lowest level in seven years last month. Retail footfall was 2.9 per cent lower this October than last.

the same month last year, as factors such as higher petrol prices forced consumers to rein in on shopping trips.

The CBI said its research showed wholesalers were finally feeling the impact of the high street downturn, and were in turn cutting their own orders to suppliers.

It was the fifth month In a row that sales were significantly lower than last year.

John Longworth, chairman of the CBI's DTS panel, said: "October was yet another tough month for retailers who have seen no let up since June. The effect of five months' very weak sales is now also having an impact on wholesalers and on the wider economy."

Mr Longworth, also executive director of supermarket group Asda, said consumers were holding back from spending on big-ticket items such as cars and household goods.

He added: "Retailers will be hoping there is light at the end of the tunnel and will be doing all they can to entice shoppers on to the high street as Christmas approaches."

Within the CBI figures, the motor sector suffered its worst sales performance since December 1999, while other badly affected areas included furniture, DIY and hardware.