UK retail sales: Strength in April spending – Lloyds

By FXStreet Analysts from Lloyds Bank notes that the retail sales report of April in the United Kingdom presented strength in spending that follows data showing a decline of consumer confidence to 16-month lows.

Key Quotes:

“Retail sales volumes rose by a monthly 1.3% and by 1.5% excluding auto fuel sales in April. That was much more than expected (CON: both 0.6%), leaving headline sales 4.3% above the level of a year ago. The rolling three month growth rate, however, was more modest at 0.3% as the strong rise in January dropped out of the three month comparison.”

“Monthly retail sales returns have been particularly volatile of late making it difficult to assess the underlying trend. March’s fall (which was revised up to -0.5% from an initial estimate of -1.3%) and April’s subsequent rebound are likely due in part to the difficulty of adjusting for Easter, which may have been exacerbated by the impact of Storm Katie over the Easter weekend.”

“The news in today’s report was the strength of April’s spending. It stands at odds with the fall in April consumer confidence to a sixteen month low and other recent data that suggests domestic uncertainty may be weighing on UK economic activity.”
For more …read more

Source:: FX Street