British retailers are continuing their booming sales as the bounce back from Covid lockdowns hopes to revive the flailing high street.
There was a slight slowdown from the the growth in June which was the highest in almost three years as shoppers rushed back after months of restrictions.
The Confederation of British Industry's measure of the volume of sales compared with a year earlier dipped to 23 per cent from June's 25 per cent, which was the highest since August 2018.
British retailers are continuing their booming sales as the bounce back from Covid lockdowns hopes to revive the flailing high street
Economists polled by Reuters had mostly expected a bigger fall to 21 per cent.
The CBI said the growth in orders was the fastest since December 2010 and the pace of sales was expected to pick up again in August.
However, sales were reported as in line with usual levels for the time of year, excluding the effect of Britain's coronavirus lockdown.
CBI economist Ben Jones said consumer demand was supporting Britain's economic recovery, although clothing and footwear stores in particular had yet to see demand recover.
'While demand may be more stable, operational issues worsen,' he said.
'Relative stock levels are at a record low and expected to fall further still, while the number one worry for many firms at the minute is labour shortages throughout the supply chain as staff self-isolate.'
Despite the signs of recovery, many businesses were forced to permanently shut over the past year after the government forced them to close during lockdown
The Bank of England is keeping a close eye on how much Britons spend from savings Britons build up during the lockdown, which could prove a key driver of the country's recovery from the COVID-19 pandemic.
It is also looking at whether bottlenecks in supply caused by the pandemic - such as dwindling stocks in the retail sector - will lead to longer-term inflation pressures.
Sales are now expected to rise at
