UK Retail Sales drop by 0.9% MoM in March vs. -0.5% expected

• The UK Retail Sales came in at -0.9% MoM in March, a big miss.
• Core Retail Sales for the UK drops by 1.0% MoM in March.
• The Cable keeps the red below 1.2450 on unimpressive UK data.

The UK Retail Sales arrived at -0.9% over the month in March vs. -0.5% expected and 1.1% previous. The Core Retail Sales, stripping the auto motor fuel sales, dropped by 1.0% MoM vs. -0.7% expected and 1.4% previous.

On an annualized basis, the UK Retail Sales declined 3.1% in March versus -3.1% expected and -3.3% prior while the Core Retail Sales decreased 3.2% in the reported month versus -3.1% expectations and -3.0% previous. 

Main points (via ONS)

“Non-food stores sales volumes fell by 1.3% in March 2023, following a rise of 2.4% in February, with feedback from retailers that poor weather conditions throughout most of March affected sales.”

“Food store sales volumes fell by 0.7% in March 2023, following a rise of 0.6% in February 2023.”

“Non-store retailing (predominantly online retailers) sales volumes fell by 0.8% in March 2023, following a rise of 0.3% in February 2023.”

“Automotive fuel sales volumes rose by 0.2% in March 2023, following a fall of 1.2% in February 2023; sales remain 8.5% below their pre-coronavirus (COVID-19) February 2020 levels.”

FX implications

GBP/USD is keeping its downbeat momentum intact at around 1.2430 after disappointing UK Retail Sales data. The spot was last seen trading down 0.13% on the day.