The UK retail industry reported its best start to a year since 2021, with March retail sales increasing by 0.4%, according to the Office for National Statistics. However, February's growth was revised down to 0.7%. Overall, retail sales rose by 1.6% in the first quarter, marking the strongest growth in four years and contributing 0.08 percentage points to the quarter's overall economic output.
This growth may represent a high point for the UK's consumer economy, as a key consumer confidence indicator fell to its lowest level since late 2023. Market research firm GfK attributed this decline to rising household energy costs and global financial market instability.
Nicholas Found, Director of Business Content at Retail Economics, noted that retailers are facing challenges in protecting profit margins, maintaining investments, and navigating an increasingly complex trading environment.
