United Kingdom Retail Sales unexpectedly rise 0.5% MoM in August vs. -0.2% estimates

Sagar Dua FXStreet

Retail Sales, a key measure of consumer spending, in the United Kingdom (UK) rises 0.5% month-over-month (MoM) in August after declining at a similar pace in July, the latest data published by the Office for National Statistics (ONS) showed on Friday. Economists expected Retail Sales to decline again but at a moderate pace of 0.2%.

On an annualized basis, the consumer spending measure rose at a faster-than-expected pace of 2.4% against the previous reading of 1.2%, revised lower from 1.6%. The data was expected to grew by 1.9%.

Market reaction

The British Pound (GBP) appears to have attracted some bids after the release of the strong UK Retail Sales data for August. As of writing, GBP/USD rebounds marginally to near 1.3366 from 1.3361.

Economic Indicator

Retail Sales (MoM)

The Retail Sales data, released by the Office for National Statistics on a monthly basis, measures the volume of sales of goods by retailers in Great Britain directly to end customers. Changes in Retail Sales are widely followed as an indicator of consumer spending. Percent changes reflect the rate of changes in such sales, with the MoM reading comparing sales volumes in the reference month with the previous month. Generally, a high reading is seen as bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.

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