UK retail sales rise unexpectedly in July
31 July 2007
A survey by the CBI (Confederation of British Industry) showed UK retail sales rising slightly in June against expectations of a slight fall. The distributive trades survey rose to +18 in July from +17 in June compared to analysts expectations of +15.
However, this was offset by retailers’ expectations of a slowdown next month. There was no comment on the impact of poor weather during June but there was reference to higher borrowing costs that are impacting the sale of household goods.
The impact on Sterling was minimal with the market still expecting at least one more rate hike before the end of the calendar year.