UK Retail Sales drop 0.5% MoM in May vs. -0.7% expected
|- The UK Retail Sales came in at -0.5% MoM in May, beat estimates
- Core Retail Sales for the UK dropped by 0.7% MoM in May.
- The cable defends gains below 1.2300 on the mixed UK data.
The UK retail sales arrived at -0.5% over the month in May vs. -0.7% expected and 1.4% previous. The core retail sales, stripping the auto motor fuel sales, stood at -0.7% MoM vs. -1.0% expected and 1.4% previous.
On an annualized basis, the UK retail sales plunged 4.7% in May versus -4.5% expected and -5.7% prior while the core retail sales tumbled by 5.7% in the reported month versus -5.1% expectations and -6.9% previous.
Main points (via ONS)
The fall in sales volumes over the month was because of food stores, which fell by 1.6%; reduced spending in food stores seems to be linked to the impact of rising food prices and the cost of living.
Automotive fuel sales volumes rose by 1.1% in May 2022, which may in part be linked to increased hybrid working and a fall in those working exclusively from home.
Non-food stores sales volumes were unchanged (0.0%) over the month; an increase in clothing sales (2.2%) was offset by a fall in household goods (negative 2.3%), such as furniture stores, and department stores (negative 1.1%).
FX implications
GBP/USD edges a few pips lower to near 1.2260 on the mixed UK Retail Sales data. The spot was last seen trading at 1.2270, up 0.09% on the day.
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