Retail sales in the UK rose at their slowest pace for more than a year in December, providing further evidence that the economy is suffering from the impact of the global credit crunch.

The Confederation of British Industry survey revealed that retail sales slowed to their lowest point since November 2006 and revealed that many retailers fear high street sales could fall further in 2008.

The CBI's expectations balance score - the percentage of retailers expecting an increase in sales rather than a decrease - fell from +11 in November to -5 in December.

This was the first time it had produced a negative reading since April 2006.