Euros and summer discounts boost retail sales

Andrew Hinds, chairman of jewellery retailers F Hinds, also found a “mixed picture” across retailing.

“We actually found June to be slightly stronger than July, slightly against the trend,” he told the BBC’s Today programme.

He said there are people willing to spend money but it is mainly older customers.

Although interest rates were cut earlier in August, they remain relatively high and Mr Hinds said that “younger people [are] struggling, cutting back [and] sometimes not spending as much as they would have done”.

But he said: “There are older people out there who have still got some cash, who are still earning some interest on their savings and willing to spend when they see value for money.”

Jacqui Baker, head of retail at accountancy firm RSM UK, said that as well as major sporting events in July, including Wimbledon, the general election result also provided shoppers “with some certainty and led to a further improvement in consumer confidence”.

But she said the latest figures showed that people continued to “put off purchases of big ticket items” as customer budgets are squeezed by the cost of living.

Shops selling household goods such as furniture, for example, reported a 0.6% fall in volumes in July, according to the ONS.

“The hope is that as the housing market gains momentum, so too will sales in household goods, as consumers look to kit out their new homes,” said Ms Baker.