Retail Sales in the United Kingdom declined by 0.5% month-over-month (MoM) in July, matching market expectations, according to data from the Office for National Statistics (ONS) released on Friday. This follows a revised 0.7% increase in June, previously reported as a 1.0% rise [1]. Core Retail Sales, which exclude auto motor fuel sales, fell by 0.9% MoM in July, a sharper drop than the estimated -0.5% and a reversal from the previous month's 0.9% increase (revised from 1.1%) [1].
On an annual basis, UK Retail Sales grew by 1.6% in July, significantly lower than the 3.8% increase seen in June (revised from 4.2%) and below the consensus expectation of 2.2% [1]. Annual core Retail Sales rose 2.3%, also missing the forecast of 3.3% and down from June’s 5.0% (revised from 5.4%) [1].
The data indicates a slowdown in consumer spending momentum in the UK, with both headline and core figures coming in below previous readings and consensus estimates on an annual basis. The article notes that weak economic data, such as this retail sales report, can negatively impact the Pound Sterling, as it may influence the Bank of England’s monetary policy decisions [1].
No specific market reaction or analyst commentary is provided in the article. However, the context suggests that weaker retail sales could weigh on the Pound Sterling and may affect expectations for future interest rate decisions by the Bank of England [1].
CONCLUSION
UK Retail Sales data for July showed a notable slowdown, with both headline and core figures missing annual expectations. This signals weaker consumer spending and could influence the Bank of England’s policy outlook, potentially pressuring the Pound Sterling.