The focus of the European session saw UK retail sales soar higher than expected even though most stores were still closed due to the implementation of strict restrictive measures.
Retail sales rose 5.4% in March, up double from 2.2% the previous month, the Office for National Statistics (ONS) reported. This reading far exceeds market expectations for an increase of just 1.5%.
These figures indicate a strengthening of consumer demand although restrictive measures are still being implemented.
The increase was driven by clothing sales which jumped 17.5%, and stores that did not sell food recorded a growth of 13.4%. Fuel sales jumped 11.1%.
Non-essential stores began reopening on April 12 as Prime Minister Boris Johnson’s administration made major progress in vaccinating the UK population. This further boosts market expectations for a stronger recovery in the coming months.
This positive reading has prompted pound currency trading to rise higher, as market focus is now geared towards the publication of UK manufacturing and services PMI data this afternoon.
