The underlying trend is still downwards, the CBI warned

Sales increased for 37% of retailers taking part in the CBI's distributive trades survey, while 26% reported a fall in sales during the month.

The CBI's retail sector index showed a balance of +11 in October, well above the -9 balance hit in September.

However, the underlying trend showed a slowing in demand, the CBI cautioned.

The latest figures were unlikely to influence interest rate policy and most analysts predict that rates will remain on hold in November.

Below normal

The CBI stressed that growth in High Street sales was still below normal for the time of the year.

There is a great deal of uncertainty about the economic cycle and it is unclear how consumer spending will fare in the months ahead Jon Longworth, CBI

The combination of higher rates, falling house price inflation and increased energy costs had still tempered the consumer's appetite for spending, it said.

"An interest rate increase in November would be damaging and there is no need for the BoE to consider a further rise for the foreseeable future," said Jon Longworth, chairman of the CBI's survey panel.

Unsurprisingly, retailers are hoping for a boost in sales in the run-up to Christmas.

"But there is a great deal of uncertainty about the economic cycle and it is unclear how consumer spending will fare in the months ahead," Mr Longworth added.

The Bank of England has raised interest rates five times in the current cycle since November 2003, to 4.75%, in a bid to rein in record levels of consumer borrowing and spending.