June 19, 2024
UK retail sales dropped by 1.2% in June from May and by 0.2% from the same month a year earlier. The result turned out to be more negative than expected. However, monthly retail sales’ 3-month moving average declined only by -0.07%, showing rather anemic result. The yearly figure is slowly reviving from the dips of -7.1% in September and December of 2022 (see chart).
Retail sales started to dive in the beginning of 2022 with the advent of monetary tightening as high rates made credit more expensive, depressing consumer confidence. Weak economy performance is now a major concern for UK police makers as it shows the slowest rates of growth among other developed nations.
Today’s retail data is rather positive for rate cuts as police makers can still see that tight monetary policy is depressing the economy