June heatwave boosted retail sales

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Retail sales volumes rose 1.2% between May and June, according to the Office for National Statistics (ONS).

The largest increase in sales volumes came from clothing and footwear stores - up 4.7% over the month, the ONS said.

The month-on-month sales figure was much higher than the 0.3% improvement forecast in the City beforehand.

Shoppers were more willing to spend money on clothes than household goods. Electrical goods and hardware stores led a 0.7% decline for the sector over the month.

According to the ONS, household goods stores have now seen 12 successive months of decline as a weaker property market bears down on trading.

The clothing-led sales boost followed survey data from the British Retail Consortium last week which showed non-food sales enjoying their best month since October last year.

Capital Economics economist Vicky Redwood said: "The big picture is still that the high street has been holding up surprisingly well since the start of this year."

Sales volumes in the three months to June are still 1.3% higher than the same period a year ago, the ONS said, despite the UK's descent into recession. Some experts put this down to those on tracker mortgages benefiting from low payments after the Bank of England sliced interest rates to a record low.

Howard Archer, of IHS Global Insight, said: "Sharply reduced mortgage payments and moderating inflation are boosting many people's purchasing power. (They are) more able and willing to step up their discretionary spending when circumstances are particularly attractive, such as when the weather is hot or when there is increased discounting."