UK Retail Sales rebound sharply by 1.9% MoM in January vs. 1.0% expected

The UK retail sales came in at 1.9% over the month in January vs. 1.0% expected and -4.0% previous. The core retail sales, stripping the auto motor fuel sales, stood at 1.7% MoM vs. 1.2% expected and -3.9% previous.          

On an annualized basis, the UK retail sales jumped by 9.1% in January versus 8.7% expected and -1.7% prior while the core retail sales rose by 7.2% in the reported month versus 7.9% expectations and -3.8% previous.

Main points (via ONS)

Non-food stores sales volumes rose by 3.4% in January 2022 as home improvement sales volumes picked up with increased sales in household goods and garden centres; non-food sales volumes were 1.1% below their February 2020 levels.

Automotive fuel sales volumes rose by 4.1% in January 2022 following a fall of 5.0% in December when increased home working and lower retail footfall reduced travel; sales volumes in January 2022 were 3.3% below their February 2020 levels.

Food store sales volumes in January 2022 fell below pre-coronavirus levels for the first time and were 0.8% below where they were in February 2020.

The proportion of retail sales online fell to 25.3% in January 2022, its lowest proportion since March 2020 (22.7%).

FX implications

GBP/USD is keeping its range near-daily highs of 1.3622 on upbeat UK Retail Sales data. The spot was last seen trading at 1.3616, modestly flat on the day.