U.K. retail sales yet again surprised on the upside, rising 0.7% m/m in January while the strong December reading was revised up to 1.7% m/m from 1.6% previously. This was well above our survey median for a 0.2% m/m drop and also stronger than our own above-median estimate for a 0.3% m/m increase. The ONS said that the January monthly increase was mainly driven by clothing and footwear sales, which rose 6.1% m/m, the strongest month reading since May last year. The sales deflator recorded a 1.0% y/y drop, indicating far smaller discounts than in December when the deflator fell 2.8% y/y on the back of the VAT rate cut and significant pre-Christmas reductions. If excluding the December reading, however, it was the sharpest negative deflator reading since March last year, highlighting that retail sales are currently underpinned by significant discounts, as retailers squeeze credit margins to meet weakening demand from cash-strapped customers.



Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.