UK retail sales unexpectedly rebound 1.1% m/m in March (GBP turns higher)

• The UK retail sales jumped by 1.1% m/m in Mar.
• The core retail sales in the UK rebounded by 1.2% m/m in Mar.

The UK retail sales jumped 1.1% over the month in March, surprising the markets to the upside while core retail sales stripping the auto motor fuel sales also unexpectedly rose 1.2% m/m.

On an annualized basis, the UK retail sales raced 6.7% in March versus 4.6% expected while the core retail sales also advanced 6.2% in the reported month versus 4.0% previous and 3.8% expectations.

Main Points (via ONS):

“Food stores was the largest contributor towards the increase for the amount spent at 0.5 percentage points. Food stores and non-store retailing were both the largest contributors to the quantity bought at 0.4 percentage points.

The quantity bought for fuel remained flat on the month, while the amount spent provided a small contribution of 0.1 percentage points.

Fuel was the smallest contributor to growth in the amount spent, and to the quantity bought, at 1.4 and 1.1 percentage points respectively.

Non-store retailing provided the largest contribution to the growth in the amount spent at 2.3 percentage points. Similarly, non-store retailing reported the largest contribution to the quantity bought at 2.4 percentage points in March 2019.”