Retailers are bracing themselves for a World Cup hangover after a football-related spending surge lifted sales over the past four months.

CBI director general Richard Lambert said retailers expected sales growth to moderate in August, particularly as consumers remained under pressure from escalating fuel costs and higher household bills.

The business lobby group's distributive trades survey reported further brisk sales in food and drink and electricals, offset by struggles for furniture and carpet retailers in the first part of July. The mixed picture meant 44 per cent of firms responding to the survey said sales were up on a year ago, with 37 per cent reporting they were down.

The balance of plus seven per cent indicates growth for the fourth consecutive month, but a little slower than June's nine per cent, which had been the figure forecast by firms before the July trading month.

Next month's outlook is not so good with a balance of one per cent, suggesting retailers expect sales to slow down.

Mr Lambert, who took over as director general from Sir Digby Jones earlier this month, said it was pleasing that despite England's World Cup exit the retail sector continued to thrive in July.

He added: "But as World Cup euphoria fades so may sales, with retailers expecting sales growth to moderate. This fits in with the broader outlook as consumers are still under pressure."

The former member of the Bank of England's monetary policy committee also pointed out that continued speculation about higher interest rates may have made consumers "understandably cautious in their spending".

Analysts have pencilled in a hike in rates from 4.5 per cent at some point this year, particularly in light of recent strong spending.

Yesterday's figures from the CBI show that grocery-based firms enjoyed their best sales month since Christmas. Durable household goods retailers selling hi-tech goods such as flat-screen televisions also saw a third month of strong growth.

John Longworth, chairman of the CBI's distributive trades panel, said: "July's figures show a great deal of variation between sectors.

"The fine weather and football undoubtedly helped lift sales growth for grocers and supermarkets, but may have dampened enthusiasm for buying furniture, or starting DIY projects."