UK Retail Sales rises 1.2% MoM in February vs. 0.2% expected

The UK Retail Sales arrived at 1.2% over the month in February vs. 0.2% expected and 0.9% previous. The Core Retail Sales, stripping the auto motor fuel sales, rose by 1.5% MoM vs. 0.1% expected and 0.9% previous.

On an annualized basis, the UK Retail Sales dropped 3.5% in February versus -4.7% expected and -5.2% prior while the Core Retail Sales decreased 3.3% in the reported month versus -4.7% expectations and -5.4% previous. 

Main points (via ONS)

Non-food stores sales volumes rose by 2.4% over the month because of strong sales in discount department stores.

Food store sales volumes rose by 0.9% in February 2023 following a rise of 0.1% in January 2023, with some anecdotal evidence of reduced spending in restaurants and on takeaways because of cost-of-living pressures.

Non-store retailing (predominantly online retailers) sales volumes rose by 0.2% in February 2023, following a rise of 2.9% in January 2023.

Automotive fuel sales volumes fell by 1.1% in February 2023 following a rise of 1.1% in January 2023 when rail strikes may have increased car travel.

FX implications

GBP/USD is keeping its cautious momentum intact below 1.2300 despite the upbeat UK Retail Sales data. The spot was last seen trading at 1.2275, down 0.07% on the day.