- The UK Retail Sales came in at -0.3% MoM in February, a negative surprise.
- Core Retail Sales for the UK dropped by 0.7% MoM in February.
- The cable pares gains towards 1.3200 on the disappointing UK data.
The UK retail sales came in at -0.3% over the month in February vs. 0.6% expected and 1.9% previous. The core retail sales, stripping the auto motor fuel sales, stood at -0.7% MoM vs. 0.5% expected and 1.7% previous.
On an annualized basis, the UK retail sales rose by 7% in February versus 7.8% expected and 9.4% prior while the core retail sales increased by 4.6% in the reported month versus 5.6% expectations and 7.5% previous.
Main points (via ONS)
“Food store sales volumes fell by 0.2% in February 2022 with large falls in alcohol and tobacco stores, which may be linked to higher spending in pubs and restaurants as confidence increased in going out; food store sales volumes were 0.1% below pre-coronavirus February 2020 levels.”
“Non-food stores sales volumes rose by 0.6% in February 2022 with growth in clothing (13.2%) and department stores (1.3%), with wider socialising and the return to the office following the lifting of Plan B restrictions at the end of January potential factors; these increases were partly offset by falls in other non-food stores (negative 7.0%) and household goods stores (negative 2.5%) with some retailers suggesting the stormy weather during the month had impacted footfall.”
“Automotive fuel sales volumes rose by 3.6% in February 2022 as the lifting of Plan B restrictions in England at the end of January 2022 increased travel; sales volumes were above pre-coronavirus February 2022 levels (0.9%) for the first time.”
FX implications
GBP/USD is trimming gains towards 1.3200 on poor UK Retail Sales data. The spot was last seen trading at 1.3204, up 0.16% on the day.