High street sales this month were higher than those notched up a year ago, according to the Confederation of British Industry (CBI).

Its latest Distributive Trades Survey showed just 18 per cent of retailers thought sales were down on the same month last year while 51 per cent thought they were up. The resulting balance of +33 per cent was the highest achieved since April 2007.

It was also considerably higher than expectations which put it at around the +11 per cent mark.

Even so, July’s figure is expected to pale in comparison with that for August where a balance of +45 per cent is predicted. If that proves to be the outcome it will be the most positive figure seen since June 2004.

"High street sales have performed well this month, with growth better than retailers predicted,” said CBI head of economic analysis Lai Wah Co who pointed out that durable goods retailers, under which the CBI classifies electricals, received a World Cup boost which benefited, not least, the sale of TVs.

"Retailers are optimistic that strong sales growth will continue next month, which is promising,” Ms Co said.

She added: “We still expect the recovery in overall consumer spending to be fairly restrained, however, given concerns about the impact of public spending cuts and weak prospects for real take-home pay in the coming year."