LONDON, April 23 Reuters Sterling rebounded on Friday from a sharp fall on Thursday after strong retail sales data and business surveys showed Britains economy might already be recovering from its worst annual contraction in 300 years.

British retail sales rocketed last month as consumers prepared for a partial lifting of coronavirus lockdown restrictions, according to official data that also showed record peacetime government borrowing.

Sales volumes leapt by 5.4 in March from February, the Office for National Statistics said. Economists polled by Reuters had expected an increase of 1.5.

On top of retail sales, a survey showed a deluge of orders swept through British businesses in April as the country lifted some of its restrictions, pointing to a rapid rebound for the pandemichit economy.

The preliminary flash reading of the UK Composite Purchasing Managers Index PMI rose to 60.0 in April from 56.4 in March, its highest reading since November 2013. A Reuters poll of economists had pointed to a smaller rise to 58.2.

After having erased its gains this week on Thursday, the pound was once again set for a weekly gain on Friday, trading 0.3 higher on the day at 1.3878 by 1055 GMT.

Against the euro, sterling was flat at 86.86 pence , above its lowest levels in almost a week against single currency.

Strong PMI data is more evident in the FX markets where both the pound and the euro are capitalising on the weaker U.S. dollar, said Sophie Griffiths, market analyst, UK…