SHOPPERS returned to the high street in July, recording a weaker-than-expected bounce back from two months of falling sales.

According to data from the Office for National Statistics (ONS), retail sales volumes rose 0.3 per cent in July, slightly below economists' forecasts of about 0.4 per cent.

Last month's figures raised fears that the retail boom was over and caused speculation that interest rates could be lowered to help boost spending.

Some economists are pencilling in a rate cut from four per cent before the year end to help boost the economy.

The fall in June was partly blamed on shoppers being distracted by the Queen's golden jubilee celebrations and the World Cup.

However, updated figures from the ONS showed June's fall was 0.4 per cent, better than the 0.7 per cent fall previously recorded.