|
Economists polled by Reuters had mostly forecast sales volumes
would increase by 0.3% on the month.
But the ONS said sales volumes showed no growth after rising by
an upwardly revised 0.1% in February.
Rises in automotive fuel sales - which were the highest since
May 2022 - and non-food store sales were offset by falls in food
stores and online and other non-store retailers, the ONS said.
Sales volumes excluding fuel sales were down 0.3% on the month.
"What is clear is that the first quarter of the year has been
disappointing for many retailers," said Lisa Hooker, leader of
industry for consumer markets at PwC. "Lower inflation and the
first 2% cut to National Insurance, which was felt in January’s
pay packets, has yet to translate into a sustained recovery in
spending."
Finance minister Jeremy Hunt - hoping to boost the chances of
the ruling Conservative Party in an election expected this year
- introduced a second social security tax cut in April after the
initial January cut.
There have been some encouraging signs recently from leading UK
retailers.
Tesco, the country's biggest supermarket group, and clothing
group Next both highlighted an improving consumer outlook and
forecast profit growth for 2024. Home improvement retailer
Kingfisher warned on profit but said its UK operations were
performing better than in France.
Sterling fell briefly against the U.S. dollar and the euro
immediately after the retail figures were published.
British consumer price inflation was its slowest in two and a
half years in March although it fell by less than expected as
motor fuel prices rose, tempering market expectations about the
scale of Bank of England interest rate cuts this year.
Friday's figures contrasted with some business surveys that
showed a pick-up in retail sales in March.
Compared with a year ago, the ONS data showed sales volumes were
0.8% higher. They rose by 1.9% from the previous three months,
the biggest such increase since mid-2021, boosted by a leap in
sales in January.
(Reporting by Suban Abdulla; additional reporting by James
Davey; editing by William Schomberg and Gerry Doyle)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
