UK: Upside surprise in retail sales – TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities note that the UK retail sales surprised to the upside at 0.7% m/m, ahead of consensus of +0.2% and far better than the hefty decline that this week's Visa data had suggested.

Key Quotes

“Details showed food store sales up only 0.1%, with non-food store sales rebounding from last month and driving most of the gain at 0.7%. Clothing/footwear sales bounced back quite strongly at 1.5% (-0.8% last month), likely supported by the discounting that we saw in yesterday's CPI data, where the June-July 2-month drop in clothing prices was the largest since 2012.”

“Overall the trend in consumer spending still looks pretty strong, and off to a good start for supporting Q3 growth. And this retail data doesn't include things like bars/restaurants and travel/tourism that will support services activity more broadly in the GDP data.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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