Retailers are braced for fresh misery with figures out this week expected to show a further fall in high street sales in May.

British Retail Consortium data are likely to show that like-for-like sales in stores last month dropped by about 2.5 per cent.

That would entrench the view that the 4.7 per cent decline in same-store sales in April - the lowest level for ten years - was not just a blip and that consumers are fast reining in their spending.

The data would renew pressure on the Bank of England to begin considering the case for a reduction in interest rates to ease the pressure on the retail sector.

JJB Sports has called for a rate cut after its sales slumped since January amid trading conditions that were the "worst for several years".

Other well-known retailers are also struggling with Marks & Spencer and Next saying publicly that they do not expect the consumer spending slowdown to ease during the rest of this year.

Kingfisher blamed higher interest rates, fuel bills, pension contributions, and taxes for deterring shoppers from spending on home improvements after its B&Q chain suffered a 7.7 per cent fall in same-store sales between February and April.

There are fears that up to 150,000 retail jobs could be at risk over the next five years because of the collapse in consumer confidence. Many economists are convinced interest rates have peaked at 4.75 per cent.