High street shops have again suffered a slump in sales.

For the second consecutive month, retailers such as Marks & Spencer, H&M, Gap, Thomas Cook, Tesco and Sainsbury’s combined to record an additional downturn.

To compound matters, economists have warned Chancellor George Osborne’s tough budget will result in further cuts to consumer spending.

In the latest monthly retail survey from market analyst CBI, figures fell by five per cent in June, well short analyst’s forecasts of positive 5 per cent growth. June spending continued the trend seen in May, where a surprisingly weak rate of -18% per cent was experienced. CBI did suggest that the World Cup would offer retailers a limited respite, as will the predicted spending rush on before the VAT hike in January, but that overall the retail growth outlook remains tepid.

The survey, polled respondents from May 29 to June 10, the beginning of the World Cup, revealed that the largest spending downturn in June was in leather goods and footwear, with hardware and DIY supplies also suffering. The areas that did show increased spending were around the football tournament in South Africa, with food, drinks and television sales all up.

Despite the poor results and gloomy forecast, retailers remain optimistic that a rebound will be seen in July, and many are relying on higher consumer spending in the second half of the year before the VAT is raised from 17.5 per cent up to 20 per cent in January. The British Retail Consortium, however, has warned that the rise will cause job losses and a rise in inflation.

Tens of thousands of garment workers have been subdued by police in Bangladesh.

Tear gas and rubber bullets were used by authorities to disperse the crowds who had gathered to demand higher salaries at a rally just outside of Dhaka.

At the Ashulia industrial area, around 30km north of the capital, workers walked off the job and ransacked several factories in support of protesters campaigning against a three-fold wage hike. Local police Chief Sirajul Islam said police were pelted with rocks and live rounds by the protestors, who blocked the highway out of the area for two hours. Chief Islam confirmed that police used rubber bullets, tear gas shells and water cannons to disperse what were termed ‘unruly workers’, prompting a return of fire which left one officer injured.

Forty police officers were wounded in the fighting, which lasted for three hours, according to Islam. He did not make any statement on how many of the garment workers were hurt in the protest, although the left-wing Garment Workers Unity Forum claimed that more than 100 were injured.

Islam told reporters that around 50,000 garment workers were involved in the protest, which is calling for a minimum monthly wage of 5,000 taka (£48). Currently, workers are paid the minimum wage set down by the 2006 manufacturers, unions and the government agreement of 1,662 taka (£16)

The violence follows a string of labour disputes at the two main apparel hubs of Ashulia and Kanchpur, which produce garments for leading global retailers such as Tesco, H&M and Wal-Mart.

Sales at the popular Swedish fashion giant H&M have fallen by six per cent compared to April last year. The news comes as a surprise to industry analysts who saw the cheap and cheerful budget brand score unusually high profits in March.

Last month, Hennes & Mauritz racked up a massive nine per cent increase in same-store sales compared to March last year, thought to be due to a shopping frenzy over the Easter weekend.  But the same figures for April this year have come in way below the 4.5 per cent predicted drop.

Analysts have put the fall in sales down to the high profits last year and the bad weather experienced in the Europe this winter, much of which left shopper unable or unwilling to leave the warmth of their homes. Total sales for the fashion chain are, however, up four per cent, which is certainly something to smile about.

H&M ended a seven-month recession-fuelled losing streak in December last year and has since seen three consecutive monthly rises in same-store sales. The high street brand has also just announced plans to expand into the southern hemisphere and released their super-cool festival goers collection.

Europe’s second-biggest clothing retailer, Hennes & Mauritz, is set to open in the southern hemisphere.

H&M has announced that it is currently investigating the possibility of new stores for Argentina, Brazil and Australia, as it looks to become involved in the emerging market growth in the region. Such a launch would also enable it to compete on the same stage as its bigger rival, Inditex.

Karl-Johan Persson, H&M’s executive officer, said that both Argentina and Brazil were interesting options. Persson, speaking from his base in Stockholm, also said that Australia was another attractive option, saying that the company was confident of beng successful in the both regions.

H&M currently operates 2,000 stores – all of which are north of the equator. The primary reason for the lack of entry into the southern hemisphere market to date has been the supply logistics associated with seasonal differences. Inditex, which has roughly double that of stores for H&M globally, launched in Brazil in 1999. The largest economy in Latin America saw retail growth of 15.7 per cent in March 2010, which means it is moving at five times the speed of H&M’s largest market, Germany.

The Swedish retailer has grown its operation by 14 per cent in the past five years and remains confident that continued growth will be met through the southern hemisphere launch. Shares in the company have risen by an additional 15 per cent so far this year, with a market value close to $50 billion.