RETAILERS reported a slow build-up to Christmas as sales growth in the first half of November fell below expectations.

But stores are confident of an improvement during December, according to the CBI's quarterly Distributive Trades Survey.

The survey shows retailers rated sales as modestly below average for the time of year but expectations remain strong, suggesting December's sales volumes will be much higher than a year ago.

It was found that 41 per cent of firms reported sales were up in November, while 22 per cent said they were down.

This balance of plus-19 per cent compares with plus-35 per cent in October when sales growth was at an 18-month high, and falls well short of expectations.

The underlying trend, however, continues to pick up, as it has done since early summer the November balance is at the highest level since June 2002.

Retailers have shown that they are confident of a good Christmas period by continuing to order more goods from suppliers.

Firms are optimistic of an improvement in the overall business situation over the next three months. This is despite the slowest annual increase in prices for nine months and the first small decline in employment for five years.

Capital expenditure plans also remain weak over the next 12 months. The survey shows a mixed picture for individual retail sectors, with grocers reporting the strongest growth, followed by booksellers and stationers.

Ian McCafferty, CBI chief economic adviser, said: "Retail sales grew at a reasonably healthy rate in November, but clearly disappointed expectations.

"However, optimism remains high and December's sales are expected to be much higher than a year ago."