Investing.com – Retail sales in the U.K. unexpectedly declined in September, falling to the lowest level since May 2010, industry data showed on Tuesday.
In a report, the Confederation of British Industry said the result of its index of U.K. retailers fell by one points to minus 15.0 in September from a reading of minus 14.0 in August.
Analysts had expected the index to hold steady at minus 14.0.
On the index, a reading above zero indicates higher sales volume, below indicates lower.
The three-month moving average of sales, which smoothes out volatility in the monthly figures, fell to minus 11.0, the weakest since August 2009.
Looking ahead to next month, sales volumes are expected to decline at a similar rate.
Commenting on the report, Chair of the CBI Distributives Trade Panel Judith McKenna said, “Consumer confidence continues to be bruised by a combination of low wage growth, high prices and rising unemployment. Shoppers are still clamping down on discretionary spending and focused on buying the basics at the best price.”
“With the consumer squeeze set to get tighter with the winter utility bills rise, we expect retailers will face a challenging October,” she added.
Following the release of the data, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.14% to trade at 1.5543.
Meanwhile, European stock markets were sharply higher. The FTSE 100 jumped 2.4%, the EURO STOXX 50 surged 3.4%, France’s CAC 40 climbed 3.3%, while Germany's DAX rallied 3.55%.
In a report, the Confederation of British Industry said the result of its index of U.K. retailers fell by one points to minus 15.0 in September from a reading of minus 14.0 in August.
Analysts had expected the index to hold steady at minus 14.0.
On the index, a reading above zero indicates higher sales volume, below indicates lower.
The three-month moving average of sales, which smoothes out volatility in the monthly figures, fell to minus 11.0, the weakest since August 2009.
Looking ahead to next month, sales volumes are expected to decline at a similar rate.
Commenting on the report, Chair of the CBI Distributives Trade Panel Judith McKenna said, “Consumer confidence continues to be bruised by a combination of low wage growth, high prices and rising unemployment. Shoppers are still clamping down on discretionary spending and focused on buying the basics at the best price.”
“With the consumer squeeze set to get tighter with the winter utility bills rise, we expect retailers will face a challenging October,” she added.
Following the release of the data, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.14% to trade at 1.5543.
Meanwhile, European stock markets were sharply higher. The FTSE 100 jumped 2.4%, the EURO STOXX 50 surged 3.4%, France’s CAC 40 climbed 3.3%, while Germany's DAX rallied 3.55%.