HOPES of a recovery on the high street were undermined by a survey showing retail sales stagnated this month and remain well below average.

Expectations for an increase were dashed by a CBI survey showing that retail sales volumes in the year to June remained flat on a year earlier.

Economists said the anaemic performance highlights fragile consumer confidence, although it should not derail wider hopes of expansion in the economy.

Sales plunged across household goods, specialist food and drink and entertainment, although grocers, department stores and footwear retailers all increased sales.

Overall, 25% of the 115 firms polled said sales volumes were higher, while 24% said sales were lower, to give a balance of just 1%.