Forex Pros – Retail sales in Britain declined less-than-expected in May, industry data showed on Tuesday
In a report, the Confederation of British Industry said the result of its index of U.K. retailers fell to 18 in May, after rising to 21 in April.
Analysts had expected the index to fall to 11 in May.
On the index, a reading above zero indicates higher sales volume, below indicates lower.
Annual sales volumes growth on the high street remained subdued in May and retailers expect a similar pace of growth next month. Meanwhile, price inflation has weakened slightly, but still remains very high.
Commenting on the report, CBI Director General John Cridland said, “Household budgets are being persistently squeezed by the gap between price inflation and weak wage growth. Given these challenging consumer conditions, it is good news that retail sales growth is stable, not falling.”
Following the release of the data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.12% to hit 1.6141.
Meanwhile, European stock markets were up. The FTSE 100 climbed 0.35%, the EURO STOXX 50 rose 0.3%, France’s CAC 40 added 0.1%, while Germany’s DAX advanced 0.65%.
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