Pound continues to weaken putting pressure on business

The pound dropped everywhere on Thursday after retail sales slumped despite the fact that most people believed they would rise with the economic recovery underway. The Office for National Statistics announced figures that show retail sales were down by a little under 1% on a month on month average compared to the 0.5% drop that they were predicted to take.

On the bright side, year on year sales were up by around 1.2% but this was a poor increase when compared to last January’s year on year comparison of just over 5%.

Sterling also took a fall against the dollar dropping 0.35% against the dollar to reach 1.6 and another 0.58% against the euro balancing out at about 1.1.  It also fell against the New Zealand, Canadian, and Australian dollars as well as against the yen.

The drop against the Euro is of special note due to the severe strain that the currency was already under when compared to the many debt problems that are popping back up across the European Union.

The decrease in retail sales came just days after the Chancellor announced his new budget aimed at ‘pro-growth’ an does little to reassure people that sterling will rise again.