Pound Sterling slumps as UK Retail Sales missed estimates
The Pound Sterling (GBP) weakens against its major peers on Friday as the United Kingdom (UK) Office for National Statistics (ONS) has reported that Retail Sales grew at a slower-than-projected pace in June.
The report showed that Retail Sales, a key measure of consumer spending, rose 0.9% month-over-month, slower than the estimates 1.2%. In May, the consumer spending measure declined by 2.7%. On year, the Retail Sales grew by 1.7%, missing estimates of 1.8% by a slight margin.
Strong demand for automotive fuel and higher sales receipts at departmental stores led to higher Retail Sales. However, sales at other non-food stores declined significantly.
Meanwhile, a slowdown in the UK private sector activity due to global trade uncertainty and a moderate hiring trend is expected to keep the Pound Sterling on the back foot. Flash UK S&P Global Purchasing Managers Index (PMI) data for July, released on Thursday, showed that the overall business activity expanded moderately, with the Composite PMI at 51.0, lower than estimates of 51.9 and 52.0 in June.
Source: FXStreet
