The optimism heading into the gradual re-opening of the economy drove the UK retail spending into the positive territory in February, a survey conducted by the British Retail Consortium (BRC) trade body showed on Tuesday.
“It’s a measure of overall retail spending at major retail chains rose by 1.0% in February compared with the same month last year, faster than the average growth rate of 0.6% in the past three months.”
“Over the three months to February, total food sales increased 7.9% but sales of non-food items fell by 5.5%.”
Paul Martin, UK head of retail at accountants KPMG which produces the survey with the BRC, noted: "Conditions will continue to be incredibly challenging as they face subdued demand, thinner margins and rising logistics costs, alongside the accelerated structural changes to the sector.”
Separately, a survey conducted by payment card firm Barclaycard revealed that confidence in the economy hit a 12-month high in February.
Consumer spending was 13.8% lower than a year before, similar to January's plunge of around 16%, Barclaycard said.
GBP/USD has flipped to gains and rebounds to 1.3835, at the time of writing. The spot is 0.07% higher on the day, thanks to a pause in the US dollar rally amid a retreat in the Treasury yields.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.