Official figures show that British retail sales jumped at three times the rate analysts had expected in June as hot weather and early summer discounting boosted sales of clothes.
The Office for National Statistics said sales volumes rose 1.2% last month, after a revised fall of 0.9% in May. Over a year, sales were up 2.9%, the strongest rate so far in 2009.
While the figures support the view that the British economy is over the worst of the recession, they are unlikely to settle the debate over whether the Bank of England will put more stimulus into the economy.
The central bank has already cut interest rates to a record low 0.5% and embarked on an unprecedented policy to pump £125 billion into the economy by buying assets, mostly government bonds.
Retail sales figures have proved notoriously volatile in recent months and analysts have questioned the veracity of the figures, which have typically been much stronger than anecdotal evidence would suggest.
The ONS said clothing sales were one of the main drivers of the June increase. Textile, clothing and footwear sales rose by 4.7% on the month, the biggest gain since January. Retailers bringing forward summer sales may have also played a part, with prices in that sector on average 6.7% lower than a year ago.
Separate figures showed that the number of mortgages approved for house purchase hit its highest level since March 2008 last month in a further sign that banks are becoming more willing to lend.
The latest lending statistics from the British Bankers' Association (BBA) showed that 35,235 mortgages were approved during June, up 61% on a year earlier. Net mortgage lending, which strips out redemptions and repayments, also edged higher, by 5.1% year-on-year to £2.6 billion in June.
