Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

'Dreadful' retail sales derail pound's election rally

'Dreadful' retail sales derail pound's election rally

A big fall in UK retail sales has weighed on the pound, derailing a rally that has taken hold since prime minister Theresa May called for a snap general election.

Retail sales fell 1.5% in March, a much bigger drop than the 0.5% investors had been expecting. That cut short the rally in the pound, which had been making further gains against the dollar before the news, leaving sterling down 0.1% at $1.28, but still up 2.2% over the week.

James Knightley, senior economist at ING, said the figures were 'dreadful'. 'We caution that this release is incredibly volatile and looking at a single month figure is almost meaningless, but the general trend is suggesting that there is a loss of momentum,' he said.

'This is a really dire retail sales performance - there is no other word for it,' added Howard Archer, chief UK and European economist at IHS Markit.

'Worryingly for UK growth prospects, the fundamentals for consumers look highly likely to see further deterioration over the coming months as rising inflation eats further into purchasing power with the squeeze reinforced by muted earnings growth,' he added.

The news hit consumer stocks, which were the worst performing sector on the FTSE 100, dragging the index eight points lower to 7,110.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Read More
Wealth Manager on Twitter