Flat high street sales hit recovery

High street sales failed to grow last month casting fresh doubts over the strength of the economic recovery.

Figures today showed sales stayed flat for a second month in a row, defying expectations of a 0.5 per cent rise. Food sales fell 0.1 per cent and clothing and shoe sales slipped 0.5 per cent.

Topshop boss Sir Philip Green described it as "one of the most challenging retail landscapes I have ever seen" and warned of a tough Christmas on the high street.

Figures tomorrow could show that the economy grew in the third quarter for the first time since the recession began last year. However, experts warned that there is more pain to come as bank lending remains subdued and unemployment continues to rise.