High street sales declined for the fourth month in a row in August but retailers are feeling optimistic about their future business prospects, according to research published by the Confederation of British Industry (CBI).

34% of retailers reported that sales rose during August compared to 51% that saw a decline. The resulting balance of -16 compares with -15 in July and -17 in both May and June.

Despite this decline retailers are no longer so pessimistic about the outlook for their general business situation. The balance of firms expecting a deterioration over the next quarter stands at -2%, the least negative result since November 2007.

"These results round off a slow and disappointing summer for many in the high street, and the picture is not set to improve in September," said Andy Clarke chairman of the CBI distributive trades panel.

"However, throughout the year retailers have become less and less negative about the business outlook, and that reflects increasing signs of stability in the wider economy."