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UK retail sales rise 0.9% in January, yet pound declines

UK retail sales rise 0.9% in January, yet pound declines

Retail sales in the United Kingdom showed 0.9 percent rise in January, beating forecasts of 0.7 percent, yet the British pound continued to trade lower.

The 0.9 percent increase in January is the fastest pace since March, following a 0.5 percent drop in December, after a moderate growth in in both food and other stores.

Food sales advanced 1.7 percent last month, dwarfing a 5.7 percent drop in fuel prices, while Textile, clothing and footwear stores climbed 3.9 percent.  

Excluding fuel, sales volume rose 1.6 percent, the most since May 2018, which is twice analysts’ forecasts of 0.8 percent, rebounding strongly after an 0.8 percent fall in December.

However, the annual reading showed an 0.8 percent increase, retreating from a previous of 0.9 percent rise. Without fuel, the annual pace was 1.2 percent, accelerating from a prior of 0.7 percent.

As of 10:55 GMT, the pound continued to trade lower for a fourth straight session at $1.2874, the lowest since February 10, compared to today’s open at 1.2919.

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