High street sees record fall in sales

High street sales saw a record slump in June, raising fears that a rapid fall in consumer spending will tip Britain into recession. The 3.9 per cent drop in sales is the sharpest monthly decline since records began in 1986, the Office for National Statistics (ONS) said. The figures represent the first official confirmation that retailers are suffering a severe downturn.

Analysts, who expected a decrease, say consumer spending is being squeezed by rising fuel bills and food costs.

The fall in spending contrasts with an unexpected sales boost in May, when good weather prompted an increase in sales of summer drinks and clothing. "June's data finally showed the official data moving into line with the gloomy anecdotal evidence," Vicky Redwood, an economist at Capital Economics told the BBC.