UK retail sales fall unexpectedly in May

LONDON, England - British retail sales fell this month at their fastest pace in more than a year, a survey by the Confederation of British Industry showed on Thursday.

The sales balance of the CBI's monthly distributive trades survey dropped to -11 from -1 in April. Analysts had forecast a reading of +3.

However, retailers were optimistic the situation would improve and the expected sales balance for June rose to +10.

"Retail sales growth has weakened since the start of the year as households continue to feel the pinch with wages failing to keep pace with the cost of living," said Barry Williams, chief merchandising officer for food of Asda and chairwoman of the CBI panel.