UK Retail Sales rises 1.2% MoM in February vs. 0.2% expected
- The UK Retail Sales came in at 1.2% MoM in February, an upside surprise.
- Core Retail Sales for the UK rose by 1.5% MoM in February.
- The Cable keeps its range below 1.2300 on the upbeat UK data.
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.
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.
