Retailers are in the grips of their worst trading period since autumn last year, survey evidence from the sector showed today.

Wintry weather and the reluctance of consumers to spend ahead of the Budget compounded a general slowdown in high street sales, the CBI said.

Retailers had been optimistic of a modest rebound in business ahead of Easter but only 31% claimed sales volumes rose in March compared with 40% who experienced a fall.

The balance of minus 9% is a sharp reversal on a mark of plus 2% in February as demand for furniture and carpets fell markedly on a year earlier.

Sales of hardware, china, pharmaceuticals and specialist foods were also weaker, while the cold weather deterred DIY enthusiasts from shopping.

But there was hope for clothing retailers who enjoyed healthy sales, while a revival in demand for big-ticket items such as washing machines appeared possible after the CBI said sales of durable household goods experienced the fastest growth.

The volume of sales for the time of year were the worst since November 1992, with only 10% saying sales volumes were good in contrast to the 47% of shopowners who said sales were poor.

CBI head of economic analysis Doug Godden said: ''Retailers had been expecting stronger sales growth in March but for the third month in a row volumes failed to meet expectations.

''Some of this poor performance might be attributed to the wintry weather at the start of March and a reluctance for consumers to spend ahead of the Budget.

''But there is no doubt that sales growth has slowed on an underlying basis since the turn of the year.''

Today's survey backs up comments from high street retailers such as healthcare chain Boots and photographic retailer Jessops that consumers are no longer spending as heavily.

Bookseller Ottakar's became the latest to report disappointing trading yesterday when it revealed that like-for-like sales are down 1.6% since January.

Analysts said the findings of the CBI survey were well below expectations and hardened the view that the Bank of England's Monetary Policy Committee (MPC) will keep interest rates on hold for now.

HSBC economist John Butler said: ''The message is simple - the slowdown in retail spending is well under way.''

This view was echoed by Royal Bank of Scotland economist Ross Walker who believes a majority of MPC members want to see firmer consumer data before sanctioning another rate hike.

He said: ''Overall, the chances of a rate rise in May are receding rapidly but it is still too soon to conclude UK rates have peaked.''