Retail sales unexpectedly fall 0.2% in September versus + 0.5% expected

• UK retail sales fell to -0.2% monthly in September, a major disappointment.
• Retail sales excluding fuel fell 0.6% in September.
• The pound flirts with daily lows below 1.3800 following dismal data from the UK.

The retail sales of the United Kingdom stood at -0.2% monthly in September compared to + 0.5% expected and -0.6% previously, marking their third consecutive month of declines. Excluding fuel, they stood at -0.6% compared to the 0.2% expected and -0.7% previously.

In annualized terms, UK retail sales decreased 1.3% in September compared to the estimated -0.4% and -0.2% in August, showing their biggest decline since last February. Excluding fuel, they fell by -2.6% in the reported month compared to expectations of -1.7% and -0.9% previously.

Highlights

“Non-food stores reported a 1.4% drop in sales volumes in September 2021, due to declines in home goods stores (negative 9.3%), such as furniture and lighting stores, and other non-food stores. food (1.7% negative) such as sporting goods stores “.

“Automotive fuel sales volumes increased 2.9% in September 2021 as demand increased towards the end of September; 1.8% above their pre-pandemic levels of February 2020.”

“Food store sales volumes increased 0.6% in September 2021 and were 3..9% above pre-coronavirus pandemic levels in February 2020.”

Forex implications

The GBP/USD UK retail sales have fallen by about 15 pips, retreating towards 1.3785, although it has subsequently recovered the 1.3800 zone. At time of writing, the pair is trading above 1.3801, gaining 0.07% on the day.