FXstreet.com (Barcelona) - Retail sales have posted another disappointing reading in June, although somewhat better than the one in May, but the purchasing power of the British consumers does not seem to recover, according to the latest survey on distributive trade by the Confederation of British Industry.
Sales in June were lower than on the previous month for 39% of the surveyed shopper, while 30% of them reported improvement on sales, which gives a balance of -9%, which marks an improvement from the -14% balance posted in May, and the -26% seen in April.
On a three month basis, however, sales have continued with their downward trend, with a balance of -16%; the weakest since the -18% seen in December 2005.
Sales were considered too poor for this period of the year by 21% of the surveyed shoppers, a somewhat larger amount then the 17% balance posted in May.
According to Andy Clarke, chairman of the CBI's Distributive Trades Panel thinks that oil prices are behind the low consumption levels: High fuel prices and concerns about the economy have blunted consumer appetites, and those retailers linked to the housing market are continuing to endure difficult conditions.