- The UK Retail Sales came in at 1.6% MoM in August, a big miss.
- Core Retail Sales for the UK fell by 1.6% MoM in August.
- The cable remains in the red below 1.1450 on the downbeat UK data.
The UK retail sales arrived at -1.6% over the month in August vs. -0.5% expected and 0.3% previous. The core retail sales, stripping the auto motor fuel sales, dropped 1.6% MoM vs. -0.7% expected and 0.4% previous.
On an annualized basis, the UK retail sales plunged -5.4% in August versus -4.2% expected and -3.2% prior while the core retail sales slumped 5% in the reported month versus -3.4% expectations and -3.1% previous.
Main points (via ONS)
All main sectors (food stores, non-food stores, non-store retailing and fuel) fell over the month; this last happened in July 2021, when all legal restrictions on hospitality were lifted.
Food store sales volumes fell by 0.8% in August 2022, which leaves them 1.4% below their pre-coronavirus (COVID-19) levels in February 2020.
Automotive fuel sales volumes fell by 1.7% in August 2022; these were 9.0% below their February 2020 levels.
FX implications
GBP/USD is holding the lower ground on the disappointing UK Retail Sales data. The spot was last seen trading at 1.1441, down 0.19% on the day.