UK retail sales created a surprise at the opening of the European session after the investor’s long-awaited data showed a very encouraging reading in October.
After contracting by 0.2% in September, retail sales in the UK rebounded significantly by 0.8% last month and also higher than expected for an increase of just 0.5%.
The increase is also the first recorded in six months in the UK, showing households have started shopping ahead of the festive Christmas holidays.
Among the main factors contributing to this increase was the increase in sales at non -food stores by 4.2%.
On the other hand, fuel sales were seen declining 6.4% as consumption returned to more normal levels after recording strong growth in September and food sales declining 0.3%.
Meanwhile, core retail sales (excluding fuel) were reported to have increased 1.6% last month compared to expectations of 0.6% and a 1.9% contraction recorded previously.
This encouraging record further boosts market expectations to see the Bank of England (BOE) start acting by raising interest rates, especially amid mounting inflationary pressures.
The initial reaction exhibited the pound was initially bullish, but was again hampered by the resurgence of the US dollar as it entered the European session.
