For the first time in more than two years, retailers considered sales to be good for the time of year, indicating that this summer's figures were given a better than average boost by the holiday period.
While 33 per cent of retailers surveyed said that sales were down on a year ago, 45 per cent reported sales were up. The positive balance of 12 per cent is the strongest since December 2004 (33 per cent). Expectations are for similar growth in September (13 per cent).
Retail jobs continued to decline in the year to August, but at a far slower rate than the record figure seen three months ago.
The grocery and durable household goods sectors achieved the fastest growth in sales. Grocers recorded their strongest balance (57 per cent) since December, while sales of durable household goods, such as flatscreen TVs were strong (51 per cent).
However, not all retail sectors reported strong growth in sales. August sales of household products were an improvement on last month, but, hardware, china and DIY stores recorded a modest increase (a balance of 4 per cent), sales of furniture and carpets were stable (1 per cent). A number of sectors saw sales fall, including shoe shops, booksellers and stationers.
Asda executive director and chairman of the CBI's DTS Panel John Longworth said: 'The positive growth in sales over the summer holidays will be a welcome relief to retailers and has exceeded their expectations. It remains to be seen whether the surprise growth seen in August will continue into the autumn. Rising costs for energy and now also for foodstuffs have already caused retailers in certain sectors to start edging prices up. While this should not halt sales growth - customers will still enjoy discounts across a range of non-food items - the rate of growth may drop back.
'There is every reason for retailers to feel positive and this is reflected in the survey. Some sectors have done better than others, though, and the Bank of England must be cautious about raising interest rates again as we wait to see the true impact of August's rate rise on the retail sector and wider economy.'
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