UK retail sales rebounded strongly in March, with volumes rising 0.7% mom, well above expectations of 0.0% and reversing a revised -0.6% decline in February. The data points to a solid end to the first quarter, with overall retail volumes increasing 1.6% qoq.
However, the strength was driven largely by a surge in fuel sales, as households rushed to fill up amid rising prices. Excluding automotive fuel, retail sales rose a more modest 0.2% mom, suggesting that underlying consumer demand remains relatively subdued despite the headline beat.
On an annual basis, retail sales rose 1.7% yoy, also above expectations of 1.2%.
| Indicator | Mar 2026 |
|---|---|
| Retail Sales (MoM) | +0.7% |
| Retail Sales ex-Fuel (MoM) | +0.2% |
| Retail Sales (QoQ, Q1) | +1.6% |
| Retail Sales (YoY) | +1.7% |
