UK retail sales unexpectedly continued to show a decline in September, adding to signs of weakness in the recovery momentum from Covid-19 in the country.
Most recently, the Office for National Statistics (ONS) reported UK retail sales fell 0.2% last month, following a 0.6% decline recorded in August and falling short of expectations to rise 0.5%.
Household items such as furniture were the main driver of the decline this month, with a fall of nearly 10%, while food sales rebounded after declining last month.
On the other hand, fuel sales jumped 2.9%, driven by surge in demand and supply constraints.
UK retail sales had risen strongly in the first half of this year when the first easing of restrictions was implemented. Yet over the past five months, it has begun to show a decline.
This indirectly shows, although more coronavirus restrictions have been relaxed but consumers are preferring to cut spending amid higher price increases, supply shortages and tax hikes.
The pound traded lower following the publication of this data by trading around 1.3785 against the USD. Investors are now waiting for the release of UK manufacturing and services PMI data at 4.30pm.
