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U.K. retail sales drop 2.3% in April

Published 05/23/2012, 04:35 AM
GBP/USD
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Investing.com - Retail sales in the U.K. fell significantly more-than-expected in April, dropping at the sharpest rate since January 2010, official data showed on Wednesday.

In a report, the U.K. Office for National Statistics said retail sales fell by a seasonally adjusted 2.3% in April, compared to expectations for a 0.8% decline.

Retail sales for March were revised up to a 2.0% gain from a previously reported 1.8% increase.

Year-on-year, retail sales fell at an annualized rate of 1.1% in April, defying expectations for a 1.0% increase, after rising at a rate of 3.1% in the preceding month.  

Core retail sales, which exclude automobile sales, fell 1.0%, compared to expectations for a 0.7% decline.

Following the release of the data, the pound accelerated losses against the U.S. dollar, with GBP/USD dropping 0.43% to trade at 1.5692.

Meanwhile, European stock markets remained sharply lower after the data. The FTSE 100 tumbled 1.6%, the EURO STOXX 50 sank 1.9%, France’s CAC 40 dropped 1.6%, while Germany's DAX plunged 1.8%.

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