The latest data from the Office for National Statistics (ONS) showed that UK Retail Sales saw a significant rebound of 2.9% in May, exceeding market expectations of a 1.5% increase. This positive growth comes after a 1.8% decline in April, indicating a strong recovery in the retail sector.
In addition to the overall Retail Sales figures, Core Retail Sales, which exclude auto motor fuel sales, also experienced a 2.9% month-over-month increase in May. This growth is a stark contrast to the 1.4% decline seen in the previous month and the market forecast of 1.3%. The annual Retail Sales in the UK rose by 1.3% in May, surpassing the 2.3% drop recorded in April. Similarly, Core Retail Sales increased by 1.2% in May, compared to the -2.5% decline in the previous month.
The positive data on UK Retail Sales had a notable impact on the GBP/USD currency pair, with the pound holding gains above 1.2650 after the release of the upbeat figures. The pair picked up fresh bids and was up 0.10% on the day, trading near 1.2670 at the time of writing. This indicates that investors and traders are reacting positively to the strong performance of the retail sector in the UK.
It is important to note that the information provided contains forward-looking statements and should be used for informational purposes only. Investors are advised to conduct their own research before making any investment decisions. The author of the article has no position in any stock mentioned and does not provide personalized recommendations or investment advice.
Overall, the significant increase in UK Retail Sales for May reflects a positive trend in the retail sector, indicating a potential economic recovery. The data exceeding market expectations has boosted confidence among investors and traders, leading to a positive market reaction.