Retail sales bounced back last month, official figures show, in a sign that growth in Britain’s “gangbusters” economy is continuing.

Sales volumes were up 0.5pc in July compared to June, according to the Office for National Statistics (ONS).

Analysts had expected growth of 0.6pc but the figure was a recovery from a 0.9pc slump in sales in June, which retailers blamed on uncertainty ahead of the general election and poor weather.

ONS director of economic statistics Liz McKeown said: “Retail sales grew in July led by increases in department stores and sports equipment shops, with both the Euros and discounting across many stores boosting sales.

“These increases were offset by a poor month for clothing and furniture shops, and falling fuel sales, despite prices at the pump falling.”

British consumers brushed off high interest rates - which were still at 16-year highs during the month - to kick off the third quarter with more spending.

Economists said on Thursday that Britain enjoyed “another gangbusters quarter” of growth as the economy expanded by 0.6pc in the three months to June.

Read the latest updates below.