There was modest growth for retailers in January, according to a CBI survey published today.

This growth confirms that activity during the January sales picked up from the slower sales in the run-up to Christmas, despite widespread price-slashing.

CBI's monthly distributive trades survey shows that sales form January 2-22 were better year-on-year, with 38 per cent of firms saying trade was up and only 31 per cent saying it was down.

The plus seven per cent counterbalance compares with minus three per cent in the previous survey period, but is well down on the plus 37 per cent average seen over the first five months of 2002.

This survey's three-month moving average, which smooths out month-to-month fluctuations, shows sales growing but at the slowest rate since March 1999.

Alastair Eperon, chairman of the DTS panel and a director of Boots, said: 'The January sales will have left retailers uncertain about future prospects. The modest pick-up since Christmas cannot hide the underlying slowdown in sales growth and the fact that many retailers slashed prices to lure customers into the shops.

'These figures come at a time when everyone is looking to see if consumer spending can continue to prop up the economy.'