"The [retail] data puts a real dent in hopes that the consumer may be perking up appreciably "
- Howard Archer, an economist at IHS Global Insight
U.K. retail sales declined more than forecast in February, said the Office for National Statistics. Total retail sales fell 0.8 per cent from January when they rose a revised 0.3 per cent.
"The data puts a real dent in hopes that the consumer may be perking up appreciably and tempers hopes that GDP will see a relatively decent return to growth in the first quarter," Howard Archer, an economist at IHS Global Insight in London, said in a research note.
"The concern is that consumers will be cautious in their spending for some time to come."
"It's not just that the February numbers are weaker than anticipated, but January is also heavily revised down," said Peter Dixon from Commerzbank.
"The hoped-for recovery [in] consumer spending certainly doesn't look to be there."
© Dukascopy Bank