CONSUMER spending shows few signs of slowing according to latest research by the employers' organisation, the CBI.

The group's latest monthly Distributive Trades Survey showed only a a slight dip in sales growth following May's record highs.

Fifty-seven per cent of firms said sales were up on a year ago while 14% said they were down. The balance of plus 43% compares with 51% in the May survey - the fastest sales growth seen for two years - and with 30% in the April survey.

The survey suggests that the fine weather and Euro 2004 soccer may have lifted sales of barbecues and garden furniture, contributing to the positive picture.

Nigel Bourne, the CBI’s South East Regional Director,based in Sevenoaks, said: "It’s important to recognise that the Bank of England's most recent interest rate rise occurred halfway through the DTS survey period and these results may therefore not fully reflect its impact.

"However, retailers have enjoyed a strong month of sales but will be wary that the recent consecutive interest rate rise will not have fully fed through yet.

"High street firms will be hoping the consumer's appetite for spending remains undiminished and the Bank of England must be careful not to overdo its attempts to gently slow this area of the economy. The gradual, well-signalled approach to monetary policy must be maintained.

"Last week's football match saw the mood of English fans sink, but football-related sales have been lifted by Euro 2004."