Fuel Surge Drives UK Retail Sales Up 0.7% in March
UK retail sales rose 0.7% in March, led by a 6.1% jump in fuel volumes as petrol and diesel prices climbed amid Middle East tensions.
Atlas Newsdesk ·
Great Britain’s retail sales volumes rose 0.7% in March, beating analyst expectations of a 0.1% increase. The lift was largely linked to a sharp rise in fuel buying, according to the data cited in the report.
Fuel sales volumes jumped 6.1% during the month. At the same time, the value of fuel sales climbed 11.6%, described as the biggest month-on-month increase since November 2021, reflecting higher prices alongside stronger volumes.
The report tied the price move to the Middle East conflict, which was associated with a surge in oil prices from around $72.50 to highs of $119.50 per barrel in early March. Against that backdrop, petrol and diesel prices rose significantly, coinciding with the increase in fuel purchases.
When fuel is excluded, overall retail sales in Great Britain increased by a smaller 0.2% month-on-month in March. That represented a recovery from a 0.6% fall in February, indicating that the broader retail picture was more subdued than the headline figure suggested.
Some categories benefited from sunnier weather, which supported discretionary spending in parts of the high street. Textile, clothing, and footwear stores recorded a 1.2% rise in sales, while department stores posted a 1.1% increase.
Not all segments shared in the improvement. Supermarkets and food stores saw sales volumes decline 0.8% in March, highlighting uneven demand across essential and non-essential categories even as the overall retail measure rose.
Alongside the retail data, indicators of sentiment and business conditions pointed to mounting pressure. The GfK consumer confidence barometer fell four points to -25 in April, its lowest level since 2023, with the decline linked to worries about the economic effects of the Middle East conflict and elevated energy prices.
Cost strains were also flagged by business surveys. The S&P Global purchasing managers’ index showed the largest jump in costs for UK service sector companies since 1996 between March and April, underscoring how energy and related inputs can feed through to the wider economy.