Uncertainty is hanging over the retail sector in the run-up to Christmas, according to a key survey by Oxford academics

The UK Retail Confidence Indicator produced by Templeton College, Oxford, for the British Retail Consortium, (BRC) showed shoppers' confidence is slipping, dropping back into the "moderate" zone after briefly registering as "high" in October.

The survey said spending had been inconsistent, while retailers had struggled to maintain profits.

Dr Jonathan Reynolds, director of the Oxford Institute of Retail Management, said: "Consumers confidence in the future economic situation took a knock and investors' confidence in the sector was downbeat.

"This adds considerably to uncertainty in the run-up to Christmas."

BRC director general Bill Moyes added: "This is a timely illustration of the critical role that consumer confidence plays in the health of the industry.

"The Government must ensure our customers can plan their spending with confidence.

"The pre-Budget report raises doubts about their ability to do this, so increasing the potential for consumer fragility."