UK retail sales showed an unexpected year-on-year rise in early March, according to a survey yesterday from the Confederation of British Industry which is slightly more upbeat than a separate report today showing consumer confidence at a 15-year low.

The consumer confidence survey, from private sector research organisation GfK NOP, also reveals that UK consumers are more pessimistic about the prospects for the general economic situation over the next 12 months than they have been at any time since October 1992.

And, although the CBI's distributive trades survey signalled the overall retail sector was in better shape than feared between February 26 and March 12, it did point to ever-tougher times for the durable household goods sector. This sector has now suffered year-on-year declines in sales for five consecutive months - suggesting consumers are becoming much more wary about buying big-ticket items such as kitchen "white goods".

Thirty-six-per-cent of retailers told the CBI that sales volumes at the end of February and in early March were up on the same period a year earlier, with 35% reporting a fall and 29% experiencing an unchanged position.

The net 1% reporting a rise was better than expected, with a balance of 2% of retailers having forecast in February that sales would be down year-on-year in the latest survey period. A net 3% of retailers had suffered a year-on-year fall in sales in early February - the first such drop since November 2006.

However, although the outturn for early March was not as bad as feared, a net 3% of retailers predicted a year-on-year fall in sales in April.

And a downbeat mood among retailers was evident in the fact that, in spite of the year-on-year rise in sales this month, only 15% considered volumes good for the time of year, with 29% believing they were poor, and 55% viewing them as average.

The net 14% saying sales were poor for the time of year represented a further deterioration from the balance of 7% which had considered volumes in early February to be disappointing.

The CBI also noted that retailers were reporting their inventories were more than adequate, relative to expected demand, and that they had in the latest period ordered less new stock from suppliers than at the same time last year.

Footwear and leather goods stores are enjoying the strongest trading, with a net 58% of retailers in this sector reporting a year-on-year rise in sales volumes.

The grocery sector remained strong, with a balance of 29% reporting a year-on-year increase in sales.

Ian McCafferty, CBI chief economic adviser, said: "This month's survey has borne out retailers' expectations that the strong growth (in sales) enjoyed in 2007 has come to an end. The picture now is of subdued activity as consumers tighten their belts amid the general cooling of activity we are seeing across the whole economy.

"One area which saw good growth was the food sector - perhaps because people are preferring to treat themselves at home instead of eating out. However, sales of bigger items, especially white goods, continued to fall, as the slowdown in the housing market and tightening of credit takes hold."

GfK NOP's closely-watched UK consumer confidence index has fallen to minus-19, down two points from last month to the lowest reading since February 1993.

The GfK NOP survey shows that consumers suffered a significant deterioration of their personal finances over the last year, and expect matters to get worse during the coming 12 months. Consumers were more downbeat about the prospects for their personal finances over the coming year than they have been at any time since March 2000.

Consumers now perceive there has been a much greater deterioration in the general economic situation in the last 12 months than they did previously, with this score now the weakest since April 1993.

The climate for major purchases was considered by consumers to be the worst since April 1995 - bearing out the CBI survey's findings on the durable household goods sector.

Rachael Joy, member of GfK NOP's consumer confidence team, said: "Consumer confidence again continues its downward trend for the seventh month in a row. With news reports of possible recession in America, fears of recession in the UK, and stock market fluctuations, the consumer's gloom is growing. We will see if (Chancellor Alistair Darling's) Budget announcements made this month improve the mood of the consumer over the next few weeks."