UK: Retail Sales Plunge by 3.7% in December

Retail Sales in the UK declined by 3.7% on a monthly basis in December following November’s increase of 1% (revised from +1.4%), the UK’s Office for National Statistics reported on Friday. This reading missed the market expectation for a decline of 0.6% by a wide margin. On a yearly basis, Retail Sales were down 0.9% in 2021, compared to analysts’ estimate of +3.4%.

Retail Sales Index measures the change in the total value of inflation-adjusted sales at the retail level. This index is a measure of the value of merchandise sold by retailers based on a sample of retail stores of various types and sizes. The data includes all sales made through the Internet. The rise in the reading, above the expected, is positive for the movements of the sterling pound – which is already enjoying a strong recovery period – but if the reading is lower than expectations, it negatively affects the movements of the sterling pound.