SHOPS in York are outperforming those in many other cities, despite enduring what could be their toughest summer for a decade, according to a city business leader.

Adam Sinclair, chairman of York Business Pride, was commenting after national shopkeepers' body the British Retail Consortium revealed that the UK's high street stores had endured their worst July since 1995.

But Mr Sinclair said despite a financial slump in York, the city was still trading better than many others in Britain.

"I would have thought it will have been the toughest trading summer for a decade - but York has to some extent bucked the national trend," he said.

The consortium's figures showed national sales this year were nearly two per cent worse than July last year, despite a huge summer sales bonanza with many shops slashing prices by half.

The July figures, which come after the Bank of England cut interest rates to revive consumer spending, showed it was the fourth worst sales month since monitoring began a year ago.

Soaring personal debts and high house prices have been blamed for the slump in sales, with householders trying to reign in their spending.

Nicholas Brown, chairman of the Browns of York department store, said their July sales had been disappointing - but overall summer trading was one per cent up on 2004.

"People are seeing house prices sticking - and it was that (high prices) that gave people the confidence to have personal debt," he said.

"One of the easiest places for people to cut back is high street spending.

"For retail traders, this is our new challenge."

Jez Willard, managing director of the Japanese Shop in Coppergate, said his summer sales had taken a significant downturn - but overall business was booming.

"It wasn't a good July," he said.

"We have experienced a marked slow down in growth since May.

"There is some uncertainty around, which I think began to rear its head just before the election.

"I think it's that which has led perhaps to an easing-off of confidence in the economy which has led to people thinking a lot more carefully."

Mr Sinclair said despite the miserable national picture, York was still receiving a healthy share of the market.

"It's been busy in the city. The feedback I'm getting is that it's very tough out there - but I think York is an increasingly attractive place to shop.

"That doesn't mean York is having a fantastic summer, but it's doing relatively well compared to national retail sales."

Updated: 10:35 Wednesday, August 10, 2005