UK Retail Sales Up 0.7% in March on Fuel Buying

UK retail sales volumes rose unexpectedly by 0.7 percent in March, driven primarily by motorists stocking up on fuel amid surging prices linked to the escalating conflict in the Middle East, according to official data released Friday by the Office for National Statistics.

The increase reversed a revised 0.6 percent decline in February and exceeded economists' forecasts of a slight 0.1 percent dip. Fuel sales volumes jumped 6.1 percent, the highest monthly gain since April 2021, concentrated in a brief period of less than a week as geopolitical tensions prompted a rush to forecourts. The value of fuel purchases climbed 11.6 percent, reflecting sharp price hikes: petrol averaged 157.34 pence per litre, up 18.5 percent from recent levels, while diesel reached 189.88 pence per litre, a 33.4 percent increase, based on data from motoring group RAC recorded Wednesday.

Excluding motor fuel, overall retail sales still grew by 0.2 percent, indicating broader consumer resilience to the initial energy price shock. Clothing retailers saw volumes rise 1.2 percent, boosted by improved weather, while technology stores benefited from new product launches. Food sales, however, fell 0.8 percent....