Asked about sales in the year to October, 41% of respondents said that volumes had risen, while 33% said they were down. The resulting balance of +8% beat expectations of +3%.

The +8% balance of respondents saying that sales had risen during the month was the highest since December 2007.

Looking ahead, retailers are optimistic that sales will continue nto imnprove. For November, a balance of 19% expects sales volumes to improve, which is the most optimistic since July 2007.

Looking at individual retail sectors: durable household goods, furniture & carpets, and booksellers & stationers all reported growth after a particularly difficult year.

Sales growth was also seen by clothing, footwear & leather retailers and grocers.

However, sales volumes fell at chemists and retailers of hardware, china & DIY.

Andy Clarke, Chairman of the CBI Distributive Trades Panel, and Chief Operating Officer of Asda, says:

"The latest official data shows the economy is still in recession, however the retail sector seems to be finding its feet again after a challenging year, and the outlook for November is encouraging. But overall the economy remains troubled and some retailers will find the recovery slow and painful.

"It is heartening to see signs of life in sectors related to the housing market, particularly those retailers selling white goods and furniture, who have had a torrid two years. And we think some consumers will bring forward big ticket purchases to beat the VAT rise in January."