Investing.com – Retail sales in the U.K. posted a better-than-expected reading in August with year-on-year numbers showing the largest increase in 11 months, official data showed on Thursday.
In a report, U.K. Office for National Statistics said that retail sales dropped 0.2% in August from the prior month, compared to the prior 1.9% gain which had been revised up from an initial reading of a 1.4% advance.
Analysts had expected retail sales to fall 0.4% last month.
Year-on-year, retail sales increased 6.2%, compared to July’s 6.3% advance which was revised from the initial reading of a 5.9% gain.
Consensus had forecast a 5.4% rise.
Core retail sales, which exclude automobile sales and fuel, fell 0.3% on the month, compared to the prior 2.1% increase in July which was revised up from an initial reading of a 1.5% increase. That was also its strongest reading since September 2015.
Analysts had expected core retail sales to decline 0.6% last month.
Year-on-year, core retail sales rose 5.9% in August, compared to the previous month’s 5.8% increase (revised from 5.4%) and the consensus forecast for a 5.0% advance. That was also its strongest reading since September 2015.
In an immediate reaction, the pound strengthened against rivals. GBP/USD traded at 1.3228 from around 1.3207 ahead of the release of the data, EUR/GBP was at 0.8490 from 0.8504 earlier, while GBP/JPY traded at 102.40 compared to 102.38 before the report.
Meanwhile, European stock markets traded flat with mixed signs. London’s FTSE 100 edged up 0.04%, the Euro Stoxx 50 gave up 0.12%, France's CAC 40 inched down 0.09%, while Germany's DAX tacked on 0.03%.