Forex News – UK retail sales beat forecasts lifting sterling
March 27, 2014 10:29 am
UK retail sales data beat forecasts to rise in February, sending the British pound to a 3-week high against the euro.
According to data from the Office of National Statistics sales volumes jumped 1.7% month-on-month in February and 3.7% year-on-year. The monthly figure showed a rebound from January’s 2.0 % drop. Forecasts were for retail sales to rise 0.5% on the month and 2.5% on the year. The retail sales figures include auto fuel of which sales increased 0.9%.
Acting as a catalyst for the move higher in sales was an increase in consumer spending at food stores. Food sales rose 2.1% from January, contributing about half the overall monthly increase in retail sales.
This suggests that British consumers are important engine of growth for the UK economy. As consumers’ household income improves and wages rise due to rising employment, retail sales are forecast to grow in 2014. The Bank of England forecasted last month that UK household-spending growth will accelerate to more than 3% in 2014.
The upbeat data lifted the pound by 0.4% within a minute of the data at 09:30am London time to a high of 1.6639.
The euro fell against the pound after the data to its lowest level since 6th March to 0.8265.
UK retail sales data beat forecasts to rise in February, sending the British pound to a 3-week high against the euro.
According to data from the Office of National Statistics sales volumes jumped 1.7% month-on-month in February and 3.7% year-on-year. The monthly figure showed a rebound from January’s 2.0 % drop. Forecasts were for retail sales to rise 0.5% on the month and 2.5% on the year. The retail sales figures include auto fuel of which sales increased 0.9%.
Acting as a catalyst for the move higher in sales was an increase in consumer spending at food stores. Food sales rose 2.1% from January, contributing about half the overall monthly increase in retail sales.
This suggests that British consumers are important engine of growth for the UK economy. As consumers’ household income improves and wages rise due to rising employment, retail sales are forecast to grow in 2014. The Bank of England forecasted last month that UK household-spending growth will accelerate to more than 3% in 2014.
The upbeat data lifted the pound by 0.4% within a minute of the data at 09:30am London time to a high of 1.6639.
The euro fell against the pound after the data to its lowest level since 6th March to 0.8265.
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