Sterling falls after UK retail sales disappoint

London

STERLING fell by around a third of a per cent on Thursday after British retail sales dropped more than expected in September, another sign that one of the developed world's brighter economic recoveries is slowing.

The impact was eased by subdued expectations for the data and by the prospect of a more upbeat first estimate of third-quarter economic growth on Friday. But the 0.3 per cent decline on the month, largely ascribed to better weather that kept winter clothes sales down, was enough to knock sterling back against both the US dollar and the euro.