- The UK Retail Sales came in at -1.0% MoM in December, a big miss.
- Core Retail Sales for the UK dropped by 1.1% MoM in December.
- The Cable tests lows near 1.2350 on the downbeat UK data.
The UK Retail Sales arrived at -1.0% over the month in December vs. 0.5% expected and -0.5% previous. The Core Retail Sales, stripping the auto motor fuel sales, fell by 1.1% MoM vs. 0.4% expected and -0.3% previous.
On an annualized basis, the UK Retail Sales plunged 5.8% in December versus -4.1% expected and -5.7% prior while the Core Retail Sales tumbled 6.1% in the reported month versus -4.4% expectations and -5.6% previous.
Main points (via ONS)
Sales volumes were 1.7% below their pre-coronavirus (COVID-19) February levels.
Non-food stores sales volumes fell by 2.1% over the month, with continued feedback from retailers and other wider evidence that consumers are cutting back on spending because of increased prices and affordability concerns.
Food store sales volumes fell by 0.3% in December 2022 from a rise of 1.0% in November, with comments from some retailers suggesting that customers stocked up early for Christmas.
FX implications
GBP/USD is under moderate selling pressure following the release of the downbeat UK Retail Sales data. The spot was last seen trading at 1.2357, down 0.24% on the day.
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