UK Retail Sales drop 1.2% MoM in July vs. -0.5% expected
- The UK Retail Sales came in at -1.2% MoM in July, missing estimates.
- Core Retail Sales for the UK dropped 1.4% MoM in July.
- GBP/USD pares gains toward 1.2700 on downbeat UK retail trade data.
The UK Retail Sales dropped 1.2% over the month in July vs. -0.5% expected and 0.6% prior, according to the latest data published by the Office for National Statistics (ONS) on Friday. The Core Retail Sales, stripping the auto motor fuel sales, fell 1.4% MoM vs. -0.7% expected and 0.7% seen in June.
The annual Retail Sales in the United Kingdom declined 3.2% in July versus -2.1% expected and June’s 1.6% drop while the Core Retail Sales decreased by 3.4% in the reported month versus -2.2% expectations and -1.6% previous.
Main points (via ONS)
Food stores sales volumes fell by 2.6% in July 2023, with supermarkets reporting that the wet weather reduced clothing sales, although food sales also fell back; retailers indicated that the increased cost of living and food prices continued to affect sales volumes.
Non-food stores sales volumes fell by 1.7% in July 2023, following a rise of 0.6% in June 2023; retailers reported that the fall over the month was because of poor weather reducing footfall.
Automotive fuel stores sales volumes rose by 0.7% in July 2023, following a fall of 0.6% in June 2023.
Non-store retailing sales volumes rose by 2.8% in July 2023; online retailers suggested that a range of promotions boosted sales.
FX implications
GBP/USD is testing daily lows near 1.2725 on the downbeat UK Retail Sales data. The spot was last seen trading at 1.2727, down 0.09% on the day.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
