UK retail sales unexpectedly jump in August

The office for National Statistics (ONS) published the UK’s retail trade report, which showed that the UK consumer spending surprised markets to the upside, rebounding sharply in the month of August.

The UK’s retail volumes came in at 1.0% in August m/m, while the annualized retail spending jumped sharply to 2.4%. Markets had estimated a 0.2% reading on a monthly basis; while a 1.1% print was expected on yearly basis.

Retail sales excluding volatile items such as fuel also surprised positively, arriving at 1.0% m/m and 2.8% y/y.