UK July retail sales +0.5% vs +0.5% m/m expected

• Prior -1.2%
• UK retail sales +1.4% vs +1.4% y/y expected
• Prior -0.2%; revised to -0.3%
• UK retail sales (ex autos, fuel) +0.7% vs +0.8% m/m expected
• Prior -1.5%; revised to -1.3%
• UK retail sales (ex autos, fuel) +1.4% vs +1.4% y/y expected
• Prior -0.8%

It’s one of those few times that UK retail sales does meet estimates, reaffirming a slight bounce back after the drop in June.

Looking at the details, there were increases in department store sales (+4.0%), other non-food store sales (+2.5%), and non-store retailing (+0.7%). But that is offset by declines in clothing store sales (-0.6%), household goods store sales (-0.6%), and automotive fuel sales (-1.9%). Food store sales were flat on the month.

There is also still a big divergence between the value and volume of overall retail sales. And that continues to highlight the impact of inflation on consumption activity in the UK economy since the pandemic.

This article was written by Justin Low at www.forexlive.com.