Forex Pros — Retail sales in the United Kingdom fell more-than-expected in May, official data showed on Thursday.
In a report, the U.K. Office for National Statistics said retail sales fell by a seasonally adjusted 1.4% in May, after rising by 1.1% in April.
Analysts had expected retail sales to decline by 0.5% in May.
Year-on-year, retail sales rose at an annualized rate of 0.2% in May, after rising at a rate of 2.4% in April. Analysts had expected year-on-year retail sales to rise at an annualized rate of 1.7%
The statisitics office said the decline in retail sales came as consumers cut back amid concerns over the economic climate, particularly increasing fuel prices and uncertainty over job prospects and pay.
The decrease followed strong growth in April as a result of the extra bank holiday, the Royal Wedding and warmer weather.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.34% to trade at 1.6140.
Meanwhile, European stock markets were broadly lower. The FTSE 100 declined 0.6%, the EURO STOXX 50 slipped 0.55%, France’s CAC 40 fell 0.7%, while Germany’s DAX slumped 0.5%.
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