UK Retail Sales see big fall and impact on Pound Euro rates

UK Retail Sales

UK Retail Sales have fallen to their lowest level since early 2021 as the cost of living crisis appears to be deepening.

With UK interest rates having being paused in the last two meetings the expectations were for growth in the retail sales sector.

However, retail sales fell by 0.3% in October.

According to some reports the poor weather has not helped the situation. This has put off shoppers from venturing outside.

As we are just a few weeks from Christmas this sector will be crucial for the health of the British economy.

Many stores have already started their sales in the interest of trying to sell as much as they can during the festive period.

Indeed, compared to twelve months ago volumes were 2.7% lower.

Whilst UK inflation has fallen to 4.6% recently this has not been reflected in consumers and their spending habits.

Clearly the cost of living issue is still very much apparent.

This has seen many people seeing the costs of their energy bills rising once again.

As the weather gets colder we could see further problems ahead for spending.

Pressure on GBPEUR rates

The Pound Euro exchange rate is now close to its lowest level in months as pressure mounts on the UK economy.

With interest rates having been paused this could see the Pound falling further from current levels.

It will be important to keep a close eye on economic data in the run up to the end of this year. Clearly data will have an impact upon Sterling exchange rates.

If you would like a free quote when buying or selling Euros then please do not hesitate to contact me.

I have worked for one of the UK’s longest established currency brokers for over 20 years. I’m confident of being able to offer you better rates than using your own bank.

Email me directly and I look forward to hearing from you.

Tom Holian [email protected]

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