UK retail sales grow, US consumer confidence falls, Indian interest rates rise

There was good news from UK retailers on Tuesday. From Reuters:

British retail sales grew at their fastest pace in three years in July, and retailers were their most upbeat in 6 years about the prospects for August, a survey by the Confederation of British Industry showed on Tuesday.

The CBI's monthly distributive trades survey's reported sales balance jumped to +33 in July from -5 in June, beating analysts' forecast for a reading of zero, as discounting, the World Cup soccer tournament and warm weather boosted sales.

It was also three times better than retailers themselves had expected. And stores expected sales growth to strengthen further next month, with an expected sales balance for August of +45 -- the highest since June 2004.

However, the outlook for US retailers may have dimmed. From Bloomberg:

American consumers lost confidence in July, shaken by mounting concern over jobs and wages that threatens to constrain the economic recovery.

The Conference Board’s sentiment index fell to 50.4, below the median forecast of economists surveyed by Bloomberg News and the lowest level in five months, figures from the New York-based private research group showed today...

Housing data continue to be positive though.

Home prices in 20 cities climbed 4.6 percent in May from the same month last year, exceeding the median forecast of economists surveyed and the biggest 12-month gain since August 2006, a report from S&P/Case-Shiller also showed. Home sales plunged following the April 30 contract-signing expiration of a government incentive worth up to $8,000, raising the risk that property values will slacken in coming months.

Rising prices, though, is something that India would prefer to have less of, as the central bank made clear on Tuesday. From AFP/CNA:

India's central bank hiked its main interest rates on Tuesday for the fourth time this year in a fresh attempt to tame the highest inflation among the Group of 20 economic powers.

India's annual wholesale price index, the main cost-of-living measure, stood at 10.55 percent in June, well above the central bank's preferred 5.5-percent level, putting pressure on governor D. Subbarao to act...

The Reserve Bank of India (RBI) opted for a 25-basis-point increase in its repo rate, the rate at which it lends to commercial banks, and a 50-basis-point rise for the reverse repo, the rate the RBI pays to banks for deposits.

The rates now stand at 5.75 percent and 4.50 percent respectively.