UK: CBI Distributive Trade Survey - Realized drops to -6% in August vs. 8% expected

• Economic activity in UK's retail sector slowed down in August.
• GBP/USD continues to push higher above 1.3100 despite gloomy data. 

Retail sales in the UK contracted at a modest pace in August with the CBI Distributive Trade Survey - Realized dropping from +4% to -6%. This reading missed the market expectation of 8% by a wide margin.

Commenting on the data, "the latest survey shows that trading conditions for the retail sector remain tough, even against the backdrop of business slowly returning," said Alpesh Paleja, CBI Lead Economist. "Firms will be wary of deteriorating household incomes and the risk of further local lockdowns potentially hitting them in the pocket for a second time."

Market reaction

This data doesn't seem to be having a negative impact on the British pound. As of writing, the GBP/USD pair was up 0.42% on a daily basis at 1.3120.