Investing.com - Retail sales in the U.K. rose much more than expected in February, underlining optimism over the country’s economic outlook, official data showed on Thursday.
In a report, the U.K. Office for National Statistics said retail sales increased by a seasonally adjusted 1.7% last month, blowing past forecasts for a gain of 0.5%. Retail sales in January was revised down to a 2% drop from a previously reported decline of 1.5%.
Year-on-year, retail sales rose at an annualized rate of 3.7% in February, above expectations for a 2.5% gain, after rising at a rate of 3.9% in January.
Core retail sales, which exclude automobile sales, jumped 1.8% last month, easily surpassing forecasts for a 0.3% gain, after declining 2% in the preceding month.
Following the release of the data, the pound turned higher against the U.S. dollar, with GBP/USD rising 0.34% to trade at 1.6638, compared to 1.6569 before the data.
Meanwhile, European stock markets were mixed. London’s FTSE 100 dipped 0.3%, the DJ Euro Stoxx 50 inched up 0.25%, France’s CAC 40 was little changed, while Germany's DAX increased 0.15%.