Data published by the Office for National Statistics (ONS) showed that retail sales stabilized in March after an increase of 0.1% in February (revised from 0.0%). Economists had expected a 0.3% increase. For the three-month period (through March), sales volumes rose by 1.9% when compared with the previous three months. This was following low sales volumes over the Christmas period for retailers. Meanwhile, in March, retail sales excluding fuel fell by 0.3%, offsetting the February increase (+0.3%, revised from +0.2%).
The data also showed that, in annual terms, retail sales increased by 0.8% in March after a 0.3% decline in February (revised from -0.4%). Economists had expected a 0.7% increase.
The ONS said that automotive fuel sales volumes rose 3.2% in March to reach their highest index level since May 2022. Retailers reported that this rise was linked to increased footfall on their forecourts. Non-food stores sales volumes (the total of department, clothing, household and other non-food stores) rose by 0.5% over the month, with increased footfall reported by some retailers. Department stores, food stores and non-store retailing sales volumes all fell over the month with retailers suggesting that increased prices were affecting consumer spending habits. The data also showed the amount spent online, known as online spending values, rose by 0.1% m/m and 1.7% per annum. The proportion of online sales was 25.9% compared to 25.8% in February (revised from 25.7%).