UK Retail Sales Register Biggest Drop in Seven Years as Weak Pound Catalyses Rising Costs
21 April 2017 by News DeskThe pound remained resilient against other currency majors such as the US dollar (GBP/USD) and euro (GBP/EUR) in Friday’s European trading following the release of disappointing UK retail sales data.
The annual figure came in at 2.6% year-on-year in March, dropping from the previous month’s 4.1% and tumbling past economists’ 3.8% forecast. The fall is the largest quarterly drop in seven years.
Office for National Statistics (ONS) senior statistician Kate Davies commented: ‘This is the first time we’ve seen a quarterly decline since 2013, and it seems to be a consequence of price increases across a whole range of sectors.’
The ONS noted that average costs in stores had risen by 3.3% on the year which marked the biggest growth since March 2012. Rising inflation has been squeezing households of late and consumers are finding goods are becoming more expensive since sterling fell following the EU referendum.
Managing director of retail at Lloyds Bank Commerciale Banking Keith Richardson said: ‘These figures suggest that the clouds are now gathering over British consumers. Rising food and petrol prices, together with slowing real wage rises appear to be finally prompting shoppers to tighten their belts, while the value of the pound continues to put pressure on retailers’ costs.’
Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.
Learn more about the Australian Dollar – Contact FC Exchange: Get A Quote
Want to live and work Down Under? Click here for expert help: Skilled Migration to Australia
Want to get a job Down Under? Click here for expert help: How to Get a Job in Australia
Click here for expert help with travel visas: Travel Visas to Australia
Click here for tourist information about Australia: Visit Australia
