The CBI said sales were lifted by World Cup related spending, but was unsure if the increase could be sustained following the end of the tournament.
Sales of durable household goods, such as televisions, increased the most. Supermarkets also received a lift from football-related sales, achieving their highest sales levels since December. Overall, sales were up in most sectors, with the exceptions of footwear, specialist foods, booksellers and stationers.
The survey covers the period May 30 to June 14 and misses two key England games on June 15 and June 25, when footfall was down 9.7 per cent and 19 per cent respectively.
The CBI said an active housing market was responsible for the fastest growth in furniture and carpet sales for 18 months and a return to sales increases in hardware, china and DIY.
John Longworth, chairman of the CBI's DTS panel and executive director of Asda said: 'It is certainly encouraging that retailer's sales have increased overall for a third month running and this bodes well for the next couple of months. In the longer-term, the consumer is likely to stay under some pressure. Wage increases remain modest, unemployment is still rising and discretionary spending power remains hemmed in by rising household and fuel costs.'
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