The British Retail Consortium reported last week that like-for-like sales in the UK rose by 1.1 per cent in the four-week period to July 30 compared with the same period a year ago. The July sales rebounded from a fall in June, when like-for-like sales dropped by 0.5 per cent.

The upbeat data shows that British consumers did not cut down on spending in the immediate aftermath of Britain’s vote to leave the European Union. After all, more than half of voters opted for Brexit, so they should be happy shoppers.

But many economists and policymakers have warned that the uncertainty generated by the vote will likely weigh on growth in the months and years ahead.

In the meantime, Italy’s highest court ruled that a referendum on constitutional reforms, on which Prime Minister Matteo Renzi has staked his future, could go ahead.

The government now has 60 days to set a date for the vote, which is expected in October or November.

The proposed re­forms would sharply reduce the powers of the Senate and cut the number of senators by two-thirds in an effort to reduce political instability.

Finally in the United States, the National Federation of Inde­pendent Business stated that its Small Business Optimism index rose by 0.1 in July to 94.6, better than the flat reading that economists were expecting. The reading is still well below the 42-year average of 98. The slight increase shows no real eagerness for increase in ex­pected sales and making capital outlays.

In July, four of the 10 sub-gauges of the index rose, four declined and two were un­changed.

The outlook for busi­ness cond­i­tions improved for the coming six months. However, more business owners are expecting conditions to be worse rather than improve.

This report was compiled by Bank of Valletta for general information purposes only.