-Barry Williams, a senior executive at Wal-Mart's Asda unit and chairman of the CBI survey
Even though UK retail sales remained strong in June, the volumes sold fell more then expected from the preceding month. The Confederation of British Industry said its retail sales balance dropped to +29 this month, down from +51 in May, which was the highest level in five month. The median estimate stood at +35. The decline was led by a sluggish activity in the grocery sector. On top of that, the gauge of expected sales for the month ahead dropped after reaching the highest level in more than 26 years last month. Official data last week indicated UK retail sales growth eased sharply in May following sturdy growth in the preceding month, as Britons bought fewer clothes. In its June MPC minutes the Bank of England said that some of policy makers believed higher real income, supported by very low inflation on the back of cheaper oil prices, failed to underpin spending morale and activity as much as had been estimated.
Meanwhile, on a political landscape, British Prime Minister David Cameron kicked off talks with European leaders in Brussels on the terms of the UK's EU membership. However, with the agenda of the European Council summit set to be dominated by the Greek debt crisis, time will be limited to consider Britain's proposal. Besides, the British leader is unlikely to provide a detailed list of demands during the summit. Cameron promised his voters an in-out referendum on EU membership by the end of 2017.
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