U.K. Retail Sales Expand 0.8% in February

• U.K. Retail Sales Expand 0.8% in February

The U.K. economic fundamentals continued to exceed expectations as consumer spending rose more than expected in February following a moderation in consumer prices and surged in wage growth.

The retail sales rose 0.8 percent in February, up from the negative 0.2 percent recorded in January and better than the 0.4 percent projected by experts, the Office for National Statistics reports.

Sales in the three months through February declined by 0.4 percent, the first decline in almost a year and suggested that weak consumer spending recorded in December weighed on the number.

“The underlying three-month picture is one of falling sales, mainly due to strong declines across all sectors in December,” said ONS statistician Rhian Murphy.

However, the rebound in consumer prices, the surged in wage growth and Brexit positive transition deal is likely to further deepen sales in the U.K in near term.

Core retail sales, excluding auto fuel, grew by 0.6 percent while food sales climbed 1.1 percent and sales of non-food item declined by 0.8 percent.

The pound gained 0.05 against the U.S dollar to trade at $1.4134 after hitting our projected target at $1.4208.