Sterling Rallies on Disappointing Sales
May 22, 2008
April retail sales in the United Kingdom brought the 1st consecutive month on month decline since January 2006. Despite aggressive discounting by retailers, consumer spending remained lethargic with textiles, clothing & footwear sales falling 1.5% y/y. Many analysts expect retail sales to post additional declines in the months ahead as current conditions will continue to strain consumer spending. Although retail sales in April declined, the decline was less than forecasted and as such the Pound rallied 0.8% against the U.S. dollar.