UK retail sales show bigger-than expected drop in Dec

The office for National Statistics (ONS) published the UK’s retail trade report for the month of December, which showed that the UK consumer spending witnessed bigger-than expected drop on monthly basis, re-entering into negative territory.

The UK’s retail volumes came in at -1.9% in Dec m/m, while the annualized retail spending dipped to 4.3%. Markets had estimated a -0.1% fall on a monthly basis; while a +7.2% reading was expected on yearly basis.

 Retail sales data excluding volatile items such as fuel also dropped -2.0%m/m, while slipped 4.9% y/y.

ONS reports, “The largest contribution to the month-on-month fall came from non-food stores.”