Retail sales in the UK came in lower than expected in January, with weak purchasing power. Data from the National Bureau of Statistics showed retail sales rose by 0.1% on monthly basis below expectations of 0.5%.
On the other hand, on yearly basis sales rose by 1.6% from a previous reading of 1.4% and expectations for 2.6%. The statistics office reported that sales of sports equipment grew faster than usual in the first month of 2018, up by 11%, while food sales declined.
The data comes in the wake of a drop in sales in December 2017. The decline was due to oversupply in black Friday discounts.
Consumer spending may be hampered for some time by higher prices faster than wages, as the devaluation of the pound after the British referendum accelerated inflation growth too much.
