Unexpected Retail Rise Bolsters UK Economic Sentiment

In February, UK retail sales unexpectedly rose by 1.0% from January, suggesting consumer resilience. The pound showed minor fluctuations against the US dollar and euro following the news. Economic growth in the UK for the fourth quarter was 0.1%, aligning with economist expectations.

The UK's retail landscape showed unexpected strength in February, with retail sales climbing by 1.0% from January, according to the Office for National Statistics. This rise contradicted a Reuters poll of economists who anticipated a fall of 0.4% in sales volumes.

Following the positive sales data, the pound momentarily peaked at $1.295 before stabilizing at $1.2944, reflecting minimal movement for the day. The euro also showed little change against the pound, trading at 83.34.

The UK's economic growth reached 0.1% for the fourth quarter, meeting the predictions of economists polled by Reuters. Annually, growth stood at 1.5%, slightly exceeding the forecasted 1.4% increase.

(With inputs from agencies.)