There was a worse than expected performance for retail sales last month, defying predictions of a consumer-led pick up from recession for the UK economy.
The Office for National Statistics (ONS) reported sales volumes were flat in March, following an upwardly revised figure of 0.1% for the previous month.
It said sales at non-food stores helped offset declines at supermarkets.
Sales of fuel rose by 3.2%.
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ONS senior statistician Heather Bovill said of the overall picture: “Retail sales registered no growth in March.
“Hardware stores, furniture shops, petrol stations and clothing stores all reported a rise in sales.
“However, these gains were offset by falling food sales and in department stores where retailers say higher prices hit trading.
“Looking at the longer-term picture, across the latest three months retail sales increased after a poor Christmas.”
While the performance will not damage the expected exit from recession during the first quarter of the year, it suggests that consumers are still carefully managing their spending.
While the cost of living crisis – exacerbated by the Bank of England’s interest rate rises to push inflation down – has severely damaged budgets, wage growth has been rising at a faster pace than prices since last summer.
Separate ONS data this week has shown the annual rate of inflation at 3.2% – with wages growing at a rate of 6% when the effects of bonuses are stripped out.
Economists widely believe consumer spending power will win through as the year progresses, despite borrowing costs remaining…
