HIGH Street sales rebounded last month as shoppers confounded expectations and continued spending, new figures revealed yesterday.

Data from the Office for National Statistics (ONS) showed the volume of retail sales in August was 0.6 per cent above July, and ahead of economists' forecasts of 0.4 per cent.

The boom was reflected in the North-East, where the major retail outlets reported impressive sales.

Albion Small, manager of the Cornmill Shopping Centre, in Darlington, said sales figures throughout the town had soared.

"There has been an increase for us and I'm sure it is the same for elsewhere in the town," he said.

"We are up on last year and with Christmas just around the corner, all the stock will be on the shelves and we will have a full selection in the shops."

The rebound in sales follows two months of consecutive falls.

Sales slid in both May and June, causing observers to say the retail boom was over.

John Butler, economist at HSBC, said the data showed the consumer was "alive and well".

The figures showed shoppers spent a total of £16.9bn during the month, pushing the yearly sales volume figure up to five per cent.