UK retail sales rebound sharply in Feb, a big beat

The office for National Statistics (ONS) published the UK’s retail trade report for the month of February, which showed that the UK consumer spending rebounded sharply on monthly basis, coming much stronger than expectations.

The UK’s retail volumes came in at 1.4% in Feb m/m, while the annualized retail spending jumped to 3.7%. Markets had estimated a 0.4% rise on a monthly basis; while a +2.6% reading was expected on yearly basis.

 Retail sales data excluding volatile items such as fuel also bettered expectations, arriving at 1.3% m/m, while grew 4.1% y/y.

Kate Davies, ONS Senior Statistician noted, “February’s retail sales figures show fairly strong growth, though the underlying three-month picture shows falling sales as February's figures follow two consecutive months of decline in December and January. The monthly growth in February is seen across all store types. The underlying trend suggests that rising petrol prices in particular have had a negative effect on the overall quantity of goods bought over the last three months.”