The Pound fell by 0.4% against the Euro after UK retail sales made an unexpected decline in May, falling by their biggest margin in 16-months as demand for food and drink declined.
According to the Confederation of British Industry annual sales growth dropped to minus 11, the lowest reading since January 2012. Economists had been expecting the data to show a rise by at least 3.
“Most sub-sectors reported flat or falling sales over the year, with only furniture and carpets and recreational goods seeing strong growth,” the CBI said. Still, “narrow balances of retailers again expect the overall business situation to improve over the next three months, with three quarters expecting conditions to remain stable.”
Today’s sales data isn’t that surprising seeing as how data earlier in the month showed that UK household expenditure increased by just 0.1% in the first quarter of 2013, the lowest level since the third quarter of 2011.
“Retail sales growth has weakened since the start of the year as households continue to feel the pinch with wages failing to keep pace with the cost of living,” Barry Williams, chief merchandising officer for food of Asda and chairwoman of the CBI panel,
A combination of increasing energy prices has led to consumers tightening their spending but the main cause for the decline in food purchases was the erratic weather. Normally at this time of year the sales of BBQ’s and outdoor items rises as people prepare for the summer, with the extended winter and continuingly erratic weather people have opted not to spend on such items, At least not yet anyway.
Retailers expect the volume of sales to pick up once more in June.
Current Pound Sterling (GBP) Exchange Rates:
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5088
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1652
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.5666
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8562
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6642
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8554
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6356
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5360
(As of 12:55pm GMT)
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