UK’s retail sales shrink more than expected in June

Retail sales in the United Kingdom shrank 1.2% month-over-month in June, after a 2.9% surge in May, pressured by election uncertainty and poor weather.

June’s drop was much steeper than market consensus of a 0.4% decrease.

Sales at non-food stores (department stores, clothing and footwear stores, furniture stores) dropped at a monthly rate of 2.1% in June.

In the meantime, sales at food stores went down 1.1% month-over-month, while online sales plunged 2.7% month-over-month, data by the Office for National Statistics showed.

In annual terms, retail sales in the UK edged down 0.2% in June, after a revised up 1.7% surge in May.

The GBP/USD currency pair settled 0.26% lower at 1.2910 on Friday. For the week, the major currency pair went down 0.58%.