Investing.com – Retail sales in the U.K. jumped in October, blasting past expectations and bolstering optimism on the British economy, official data showed on Thursday.
In a report, U.K. Office for National Statistics said that retail sales increased 1.9% in October from the prior month, compared to the prior gain of 0.1% which was revised from a previously flat reading.
Analysts had expected retail sales to rise 0.4% last month.
Year-on-year, retail sales soared 7.4%, compared to September’s 4.2% advance which was revised up from the initial reading of a 4.1% gain.
Consensus had forecast a 5.3% rise.
Core retail sales, which exclude automobile sales and fuel, gained 2.0% on the month, compared to the prior 0.1% increase in September which was revised up from an initial reading of no change.
Analysts had expected core retail sales to rise 0.4% last month.
Year-on-year, core retail sales rose 7.6% in October, compared to the previous month’s 4.0% increase (unrevised) and the consensus forecast for a 5.4% advance.
In an immediate reaction, the pound moved higher. GBP/USD traded at 1.2502 from around 1.2484 ahead of the release of the data, EUR/GBP was at 0.8580 from 0.8593 earlier, while GBP/JPY traded at 136.39 compared to 136.18 before the report.
Meanwhile, European stock markets saw mixed trade. London’s FTSE 100 gained 0.23%, the Euro Stoxx 50 fell 0.22%, France's CAC 40 dropped 0.03%, while Germany's DAX lost 0.26%.