Investing.com - Retail sales in the U.K. fell unexpectedly in June, dampening optimism over the country’s economic outlook and dimming prospects for higher interest rates, official data showed on Thursday.
In a report, the U.K. Office for National Statistics said retail sales declined by a seasonally adjusted 0.2% last month, disappointing forecasts for a gain of 0.3%. Retail sales in May rose by 0.3%, whose figure was revised from a previously reported gain of 0.2%.
Year-on-year, retail sales increased at an annualized rate of 4.0% in June, below expectations for a 4.9% gain, after rising at a rate of 4.7% in May.
Core retail sales, which exclude automobile sales, fell by a seasonally adjusted 0.2% last month, compared to forecasts for a 0.3% rise, after gaining 0.4% in May.
GBP/USD was trading at 1.5625 from around 1.5655 ahead of the release of the data, while EUR/GBP was at 0.7035 from 0.7017 earlier.
Meanwhile, European stock markets were mostly higher. London’s FTSE 100 tacked on 0.1%, the EURO STOXX 50 advanced 0.1%, France's CAC 40 rose 0.1%, while Germany's DAX inched up 0.1%.