Hopes that consumer confidence was on the up have been dampened by official figures which show that high street retail sales fell more than expected in May.

Trade fell by 1.6% against May 2008, and was 0.6% below April's trading.

The year on year quarterly sales growth of 0.6% was the joint weakest since 1995.

Economists said the depressed retail sales suggested Britain was further from recovery than was thought.