Retail sales declined by 0.2% last month compared with August, according to the Office for National Statistics (ONS).

This is the second successive monthly fall in retail sales and the figures are likely to reinforce the view that Britain's economic recovery has peaked after bouncing back from an 18-month recession.

"Today's figures provide further evidence to suggest that the period of surprising consumer resilience is coming to an end. We continue to think that the colossal fiscal squeeze ahead will mean that household spending falls by around 0.5% next year," said economist Samuel Tombs of Capital Economics.

On the year, sales were 0.5% higher, well below forecasts for a reading of 1.0% annual growth. However, some analysts have predicted that sales may pick up before the end of the year ahead of the January 1st VAT rise.