UK Retail Sales Rise 0.7% in March, Supported by Fuel Purchases
UK retail sales volumes rose 0.7% month-on-month in March 2026, reversing from a revised -0.6% decline in February and beating market expectations of +0.2%. This increase marks a recovery in consumer demand at the end of the first quarter.
The main driver came from fuel purchases, with retailers noting motorists stockpiling fuel amid the war in the Middle East. Excluding the automotive fuel component, retail sales still rose 0.2%, indicating a more moderate improvement in core spending.
In the non-food category, non-food store sales rose 0.7%, supported by stronger clothing sales as the weather improved. Auction houses and computer and telecommunications retailers also performed better, helped by new product launches.
Non-store retailers' sales also rose thanks to spring promotions and new releases, with volumes reaching their highest level since February 2022. In contrast, commercial art galleries declined after strong gains in January and February.
On an annual basis, retail sales rose 1.7% (YoY), slowing slightly from 1.8% in February but still above the 1.3% forecast. Going forward, the market will typically assess whether this strengthening is temporary due to fuel and weather factors, or whether it is strong enough to maintain consumption momentum while the risk of energy inflation remains a concern. (asd)
Source: Newsmaker.id
