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The high street is pinning its hopes on a last-minute Christmas rush as a record number of retailers report a fall in sales.

According to a monthly survey from the Confederation of British Industry (CBI), just 13 per cent of firms reported higher sales in December than last year compared to 67 per cent who said they were lower.

The resulting balance of -55 per cent is the weakest recorded since the survey began in 1983.

Andy Clarke, chairman of the CBI distributive trades panel, and retail director of Asda, said: "The next week will be nail-bitingly tense for retailers as they pin their hopes on a last-minute Christmas dash.

"We have already seen many stores bringing forward their sales and discounting goods deeply in order to entice customers into the shops.

"But with shoppers continuing to watch their pennies, it seems many are holding off doing their Christmas shopping in the hope of bagging a bargain."

Those linked to the housing market continued to be hit the hardest. All retailers of durable household goods reported lower sales, while 90 per cent of furniture & carpets and 80 per cent of hardware, china & DIY retailers have recorded steep falls in sales.

Motor traders are also reporting sharply falling sales for the sixth month running, with all of those surveyed experiencing a drop in sales on a year ago.

A balance of 87 per cent anticipate a fall in sales in January.

Many retailers have launched sales events to entice customers back and a report from Ernst & Young shows average sale discount is now 37.1 per cent – compared to 34.6 per cent last year.

Further price cuts are expected in the final week before Christmas and in the January sales.