While 22 per cent of retailers said sales volumes between New Year's Eve and February 15 were up on a year ago, 40 per cent said they were down. The negative balance of -18 per cent compares with -11 per cent in January.
The CBI also recorded the sharpest fall in employment in its 22-year history - 37 per cent of retailers reported a fall in jobs while only 11 per cent reported a rise. Jobs are expected to remain similarly down on a year ago in March.
However, business optimism has improved since November, when it was the weakest in the survey's history. Retailers expect the business situation to be broadly stable over the next three months.
Prices also stabilised in the year to February after falling in the previous15 months.
The strongest annual sales increase was reported by grocers, although at a slower rate. Volumes in clothing stores levelled off following two months of growth, although sales continued to fall in footwear and leather. Hardware, china, DIY, furniture and carpets accounted for the largest year-on-year fall in sales.
Executive director of Asda and chairman of the CBI's Distributive Trade Survey Panel John Longworth said: 'Confidence about the overall retail outlook has recovered since November's low and some retailers now expect a slight improvement in sales over the coming month.'
Capital Economics analyst Vicky Redwood added: 'Overall, today's data lends tentative support to our view that the consumer spending slowdown has further to run.'
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