Retail sales in Britain shrink and defy expectations during October.

Data released by the UK Office for National Statistics on Friday morning showed negative retail sales figures for the country during October, with retail sales recording a contraction of 0.7% month-on-month in October, while markets had anticipated a contraction of 0.3%. Retail sales in the United Kingdom had grown by 0.3% in the previous September.

The index measures the change in the total value of inflation-adjusted sales at the retail level and serves as a metric for the value of goods sold by retailers based on a sample of retail stores of various types and sizes. The data includes all sales conducted online.

A reading higher than expected is positive for movements in the British pound, but if the reading is lower than expected, it would negatively affect the pound's movements. It is also a key measure of consumer spending, which represents the majority of overall economic activity; an increase in retail sales signifies more spending. Additionally, the index reading illustrates trends in retail sales and the demand for certain types of goods over others.