by business editor Trevor Sturgess

The Queen’s Diamond Jubilee waved the flag for retailers in early June.

UK retail sales values were up 1.4% on a like-for-like basis, compared to a 0.6% dip a year ago. Overall, sales were up 3.5%, against a 1.5% rise in June 2011.

But the good news was at the start of the month. The Jubilee celebrations and warm weather brought a strong start to the trading period.

Food and drink, clothing and footwear and online all performed particularly well during the week before the Jubilee.

But once the bunting had been rolled up, and the heavens opened, leading to the wettest June on record, the rest of the month proved more challenging.

Discretionary and big-ticket items continued to struggle amid renewed concerns about the economy, jobs and personal finances. Women’s clothing was tough going, as the latest gloomy figures from Marks & Spencer only underline.

Online (including mail-order and phone) sales of non-food items showed stronger growth, up 12.1% (11.5% last year).

Stephen Robertson, director general of the British Retail Consortium, said: “It was the bunting boost.

June was saved by the feel-good lift of the Jubilee, showing how crucial these temporary factors are in our difficult trading conditions.

“A trip to the shops played a big part in preparations for the occasion. The week leading up to the long weekend was a stand-out for the retail sector.

Food and clothing and footwear retailers had the best of it as people bought in special food and drink and, encouraged by warmer weather, some treated themselves to shorts, dresses and sandals.”

But the soggy celebrations were followed by weaker business for the rest of the month.

Helen Dickinson, Head of Retail, KPMG, said: “The double whammy of uncertain sales levels and ongoing promotional activity continues to hit profits and cash flows.”

She added that the Olympics should boost retail sales, especially food, with the biggest gains expected in the south east.