UK July retail sales +0.5% vs +0.5% m/m expected | Forexlive

• Prior -1.2%
• UK retail sales +1.4% vs +1.4% y/y expected
• Prior -0.2%; revised to -0.3%
• UK retail sales (ex autos, fuel) +0.7% vs +0.8% m/m expected
• Prior -1.5%; revised to -1.3%
• UK retail sales (ex autos, fuel) +1.4% vs +1.4% y/y expected
• Prior -0.8%

It’s one of those few times that UK retail sales does meet estimates, reaffirming a slight bounce back after the drop in June.

Looking at the details, there were increases in department store sales (+4.0%), other non-food store sales (+2.5%), and non-store retailing (+0.7%). But that is offset by declines in clothing store sales (-0.6%), household goods store sales (-0.6%), and automotive fuel sales (-1.9%). Food store sales were flat on the month.

There is also still a big divergence between the value and volume of overall retail sales. And that continues to highlight the impact of inflation on consumption activity in the UK economy since the pandemic.