Retail sales increased by 1.4 per cent annually on a like-for-like basis in June, according to the British Retail Consortium (BRC).
This follows a 1.3 per cent increase in May and means there has been a 3.5 per cent rise annually.
The rise was aided by the Queen’s Diamond Jubilee celebrations that encouraged households to spend on food, drink and party accessories such as bunting. Warm weather in the first week of June, the lead up to the Diamond Jubilee saw encouraging spending but after this the weather changed and impacted retail sales.
Analysts expected to see an increase of two per cent, but the adverse weather in June discouraged shoppers from making other purchases.
Discretionary purchases and big-ticket items continued to see low numbers of purchases as customers’ caution over the economy, employment and personal finances continued to discourage spending.
Online sales of non-food items continued to show strong growth, up 12.1 per cent against growth of 11.5 per cent in 2011.
Stephen Robertson, Director General, British Retail Consortium, said: "It was the bunting boost. June was saved by the feelgood lift of the Jubilee, showing how crucial these temporary factors are in our difficult trading conditions.
“The week leading up to the long weekend was a stand-out for the retail sector.
"With the first half of the year complete, we can see total sales growth between this January and June was no better than in 2011. It’s clear a permanent upturn in confidence and spending has yet to happen.”Free guide to savings and investments
Sign up to the Myfinances.co.uk newsletter to receive the latest financial news direct to your inbox.