Sales on the high street increased in July compared with 2009, surpassing retailers' expectations, according to the latest CBI Distributive Trades Survey.
The survey found that while 18% of retailers said sales were lower than a year ago, 51% said they had increased, giving a balance of 33%. This was the highest balance since April 2007 and thrashed the expected figure of 11% based on survey findings last month.

Annual summer discounts, the World Cup and warm weather appear to have encouraged high street sales, said the CBI.

Looking to August, a balance of 45% expects a higher volume of sales next month - the most positive figure since June 2004.

CBI head of economic analysis Lai Wah Co said: "High street sales have performed well this month, with growth better than retailers predicted. Annual summer discounts and warm weather helped lift sales of clothing, while grocers and durable household goods retailers appear to have benefited from a World Cup boost to sales of food, drink and new televisions.

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

In wholesaling the figures were less encouraging, said the report. Comparing July 2010 with July 2009, 42% of wholesalers said the volume of trade was lower and 31% said it was higher, giving a balance of -11%, notably lower than the 26% figure expected last month.

The July Distributive Trades Survey was conducted between June 23 and July 14, covering 20,000 outlets of firms responsible for 40% of employment in retailing.