Retail sales were running ahead of last year's for the third month running in June, boosted by the more active housing market as well as the World Cup.

Shopkeepers telling the CBI's distributive trades survey that their sales were up on June last year outnumbered those reporting a set back by nine per cent of the sample -unchanged from May, itself the strongest showing since May, 2004.

Sales of flat-screen TVs helped durable household goods to remain the bestselling sector for a second month. Grocers benefited, too, from activity associated with the World Cup.

But housing related products were also selling well, with hardware, china and doit-yourself, along with furniture and carpets, both showing double-digit positive balances.

One change was that this month motor dealers shared in the general upturn. There was still an adverse balance of minus two per cent saying their sales were down year on year. But that was a marked improvement on a minus 22 per cent in May and the best month for the motor trade since February.

It was notable, though, that sales of vehicles still showed an adverse balance of minus 22 per cent this month, contrasting with a positive 33 per cent reporting better sales of parts and accessories.

Among mainstream retailers, there was still an adverse balance of minus four per cent describing their sales a "poor for the time of year" - but the CBI pointed out this was the least negative response to this question for nearly 20 months.

Retailers are looking for their sales growth to hold up next month, with the balance of expectations for July also coming in at nine per cent.

Taking the latest three months together, the balance rose to plus seven per cent from minus two per cent in May, the first positive three-month reading since February last year.

"It is encouraging that retailers' sales have grown overall for a third month running and this bodes well for the next couple of months," said John Longworth, chairman of the survey's panel and a director of Asda.

"Consumers' purchases linked to the World Cup have lifted sales for some sectors. But not all sectors have benefited and the recent pick-up may prove to be short-lived once the England team returns home - let's hope not too soon.

"In the longer term, the consumer is also likely to stay under some pressure. Wage increases remain modest, unemployment is still rising and discretionary spending power remains hemmed in by rising household and fuel costs.

"Add to that the instability in the world's financial markets and speculation about interest rates, and consumers may yet become more cautious in their spending."

Anecdotal evidence has suggested that sales growth may have tailed off once as the World Cup got under way as people stayed at home to watch the games.