UK September retail sales +0.3% vs -0.3% m/m expected

• Prior +1.0%
• Retail sales +3.9% vs +3.2% y/y expected
• Prior +2.5%; revised to +2.3%
• Retail sales (ex autos, fuel) +0.3% vs -0.3% m/m expected
• Prior +1.1%
• Retail sales (ex autos, fuel) +4.0% vs +3.2% y/y expected
• Prior +2.3%; revised to +2.2%

It’s a welcome sight for the BOE to see UK retail sales hold up for yet another month. That as they continue to buy time for price pressures to dwindle further.

Looking at the details, the improvement in consumption activity is largely driven by higher department store sales (+1.9%) and other non-food store sales (+5.5%). On the latter, computer and telco sales contributed the most. The iPhone 16 effect perhaps? Meanwhile, food store sales were down 1.9% on the month and was pretty much the only drag. Retailers pointed to unseasonably poor weather and consumers continuing to cut back on luxury food items.

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