Forex Pros – Retail sales in Britain fell significantly more-than-expected in February, industry data showed on Thursday.
In a report, the Confederation of British Industry said the result of its index of U.K. retailers dropped to 6 in February, down from 37 in January.
Analysts had expected the index to decline to 30 in February.
On the index, a reading above zero indicates higher sales volume, below indicates lower.
According to the data, U.K. retailers do not expect any sales increase next month, while price inflation has risen considerably and was due to remain high in March.
Commenting on the report, CBI Head of Economics Lai Wah said, “Retail sales are likely to be more challenging over the coming months. At the same time prices are set to rise considerably as the VAT increase and the soaring cost of raw materials are passed on to shoppers.”
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.25% to hit 1.6169.
Meanwhile, European stock markets were broadly lower. The FTSE 100 slipped 0.30%, the EURO STOXX 50 fell 0.45%, France’s CAC 40 shed 0.21%, while Germany’s DAX tumbled 1.03%.
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