Non-food store sales increased by 0.7% but were down 0.5% over the year.
Clothing store sales rose by 1.7% month-on-month in February, driving non-food store sales higher.
Department and other non-food store sales increased by 1.6% and 0.4%, respectively.
However, food store sales volumes declined by 0.3% in February.
Automotive fuel sales were down 1.3% month-on-month.
Retail sales volumes were down 0.4% in the three months to February compared with the previous three months.
Retail sales were down 0.4% year-on-year in February and remained 1.3% below pre-pandemic levels (February 2020).
Bank of England Monetary Policy Implications
The pullback in retail sales supported the Bank of England outlook on interest rates and monetary policy.
On Thursday, the dynamics of the Monetary Policy Committee Meeting turned sharply dovish. The MPC voted 8-1 for holding interest rates at 5.25%. One MPC member voted for an interest rate cut. In the previous meeting, two MPC members voted for a rate hike in a 7-2 vote to leave interest rates at 5.25%.
Weaker consumer spending could dampen demand-driven inflation and fuel BoE discussions about an interest rate cut.
GBP/USD Reaction to the UK Retail Sales Numbers
Before the UK retail sales figures, the GBP/USD rose to a high of $1.26750 before falling to a low of $1.26234.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXEmpire – https://www.fxempire.com/news/article/uk-retail-sales-stagnate-in-february-after-3-6-surge-in-january-1418194
