Watching England was thirsty work

The business body said its members saw strong demand for beer, TV sets and football clothing, thanks to the Euro 2004 tournament.

The CBI's latest distributive trades survey showed 57% of retailers reported sales up on a year ago in June, while only 14% said they were down.

The figures "showed little sign of a consumer slowdown", the CBI said.

June's positive balance of 43 compared with plus 51 in May, which was the fastest growth in two years.

The underlying trend in sales growth rose in June at the fastest pace since October 2001

Appetite for spending

Barbeques and garden furniture also sold well during June's warm patches.

On the downside, as soaring oil prices took their toll on the petrol forecourt car traders reported a fall in sales for the first time in five months.

Looking ahead, retailers were less upbeat about the prospects for the outlook for sales volumes in July, with the expected balance dipping to plus 38.

The Bank of England's most recent interest rate increase took place halfway through the survey period, so it will not be clear until July's survey whether this has had the desired effect on slowing spending.

"High Street firms will be hoping that consumers' appetite for spending remains undiminished and the Bank of England must be careful not to overdo its attempts to gently slow this area of the economy," said John Longworth, chairman of the CBI's survey panel.