UK Retail Sales rebound 1.4% MoM in April vs. -0.2% expected

The UK retail sales arrived at 1.4% over the month in April vs. -0.2% expected and -1.2% previous. The core retail sales, stripping the auto motor fuel sales, stood at 1.4% MoM vs. -0.2% expected and -0.9% previous.          

On an annualized basis, the UK retail sales slumped 4.9% in April versus -7.2% expected and 1.3% prior while the core retail sales decreased by 6.1% in the reported month versus -8.4% expectations and -0.2% previous.

Main points (via ONS)

Food store sales volumes rose by 2.8% in April 2022, mostly because of higher spending on alcohol and tobacco in supermarkets; supermarket food sales were broadly unchanged.

Non-store retailing sales volumes, which are predominantly sales from online-only retailers, rose by 3.7% in April 2022 led by stronger clothing sales.

Automotive fuel sales volumes rose by 1.4% in April 2022 following a fall of 4.2% in March when record increases in petrol prices impacted sales.

Non-food stores sales volumes fell by 0.6% in April 2022 because of falls in other non-food stores (negative 3.3%) and household goods stores (negative 0.5%) such as furniture stores.

FX implications

GBP/USD edges a few pips higher on the UK Retail Sales upside surprise. The spot was last seen trading at 1.2485, up 0.19% on the day.