The Pound yet again was at the forefront of poor retail sales data in December, coming out below market expectations at 0.3% rather than the 0.4% forecast. Markets were prepared for a boost considering the month should see consumers increase their spending with the festive season in mind, however with the cost of living taking its toll this shows consumers are tightening their belts and becoming more cautious with their hard earned money.
News of this decline shows a significant miss that UK consumers are somewhat shying away from spending, which in turn, poses further concerns surrounding economic growth in the months ahead.
Following the continued slowdown in growth and the treasury having to step in to steady markets, they now anticipate a February rate cut from the Bank of England and further cuts to take place during the year.
With the US also releasing retail sales, despite the rise it fell short of the market’s expected print of 0.6%, only coming in at 0.4%. Despite coming in short, the underlying data although showed paramount spending momentum in consumers, continuing to support the ever-strengthening Dollar.
-Oakleigh Exchange Partners-