Forex Pros – Retail sales in Britain fell significantly more-than-expected in June, disappointing retailers’ expectations of growth, industry data showed on Thursday.
In a report, the Confederation of British Industry said the result of its index of U.K. retailers tumbled 20 points to minus 2 in June from 18 in May.
Analysts had expected the index to fall to 13 in June.
On the index, a reading above zero indicates higher sales volume, below indicates lower.
The three-month moving average of sales volumes weakened slightly in June to 12 from 18 in May.
June’s decline in sales volumes was mainly driven by weakening sales in clothing and grocery stores.
Commenting on the report, Chair of the CBI Distributives Trade Panel Judith McKenna said, “Consumers are really feeling the pinch as disposable incomes continue to be squeezed by rising prices and weak earnings growth”
She added that, “Shoppers are budgeting hard and cutting back on their discretionary spending, such as on clothes and big ticket household goods.”
Following the release of the data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.44% to trade at 1.6001.
Meanwhile, European stock markets were broadly lower. The FTSE 100 slumped 0.85%, the EURO STOXX 50 tumbled 1.3%, France’s CAC 40 sank 1.1%, while Germany’s DAX declined 1%.
ForexPros.com
