UK retail sales fall 1.4% in March, official data shows

ANKARA

Retail sales in the UK shrank 1.4% month-on-month in March, far more than expected, as affordability starts to weigh and consumers spend less due to rising prices, according to data by the Office for National Statistics (ONS) on Friday.

Economists had forecast a drop of 0.3%.

"Retail sales fell back notably in March with rises in the cost of living hitting consumers’ spending," said Darren Morgan, ONS director of economic statistics.

"Fuel sales also fell substantially, with evidence suggesting some people reduced non-essential journeys, following record high petrol prices, while food sales continued to fall, dropping for the fifth consecutive month," he added.

The largest contribution to the decrease came from non-store retailing (7.9%), while sales of food decreased 1.1%, amid war-driven inflation, an ONS statement said.

“Automotive fuel sales volumes fell by 3.8% in March 2022 with other data sources indicating that some non-essential road travel had been reduced following record high petrol and diesel prices,” it added.

However, sales at non-food store sales increased by 1.3% thanks to growth in other non-food stores (2.9%), and household goods stores (2.6%).

Compared to their pre-coronavirus levels, retail sales were 2.2% higher though.