CHRISTMAS looks likely to leave retailers feeling less than merry, despite news that sales growth in November may have risen to its highest level since July, according to the CBI.

The survey suggests the level of sales in December is expected to be below average, despite retailers cutting prices to attract customers.

Nigel Bourne, CBI South East regional director, said: "The late night shopping season is upon us and it is not unusual to experience a slow build-up to Christmas.

“However, this year retailers appear to be bracing themselves for a disappointing festive season as consumers show a reluctance to spend in the face of rising interest rates and concerns about the economy. A bumper Christmas would be a big surprise.

With uncertainly over the Christmas sales performance, retailers have cut jobs and firms said investment has deteriorated.