020 7898 0500The big release from the UK yesterday was the retail sales figures for April. Month-over-month, they increased by some 1.6%, easily beating market expectations of a 0.7% rise. To put that into context, it is the largest gain in retail sales since October 2016 and presents some welcome relief for the UK. More impressive still was that year-on-year, retail sales increased by 1.4% which was far better than the 0.1% the markets had anticipated.
The news helped sterling strengthen against the dollar in what is perhaps a sign of investors holding onto any positive economic data from the UK. The truth is, one piece of retail sales data isn’t all that important in the grand scheme of things, but if it proves to be a sign of the times to come then it is extremely positive. Let’s hope that the drop in inflation and increase in average earnings filters through to the British public and they continue to take to the high street and boost the economy.
Today we will see the second estimate of the GDP growth rate for the first quarter of 2018. The figure is expected to be revised downward from 1.4% to 1.2% which would take the wind out of yesterday’s sails somewhat. But it might yet prove inaccurate. Even GDP holding steady on the second estimate would be extremely positive. I guess we’ll find out shortly.
