High street retailers reported a greater-than-expected slowdown in sales growth this month, the CBI said, amid poor weather and weak consumer confidence.
A balance of 11% of retailers said sales volumes were higher than a year ago this month, which was a weaker reading than companies had predicted in June.
Businesses also reported higher orders in July, with a balance of 5% reporting growth, but again this was lower than anticipated by the industry, the CBI said.