DAVY VIEW

The unseasonably wet weather means it is difficult to put too much weight on this morning’s data showing that UK retail sales volumes fell by 1.2% in July following three consecutive monthly gains. True, consumer confidence waned in July following poor CPI inflation data and expectations that the Bank of England would be forced to raise rates above 6%. However, sharp drops in clothing and department store sales no doubt reflected weaker footfall as shoppers stayed at home due to the poor weather.