UK retail sales unexpectedly climbed in March, giving the high street a modest boost at the end of the quarter. The Office for National Statistics said sales volumes rose by 0.4% month on month, beating expectations in a Reuters poll that had pointed to a small decline. The ONS also said sales were up 2.6% compared with March 2025.

The monthly increase was driven in part by stronger spending on clothing and outdoor goods, helped by better weather, while fuel sales also picked up as petrol prices remained a major concern for households. That makes the data look slightly better on the surface, although part of the rise appears tied to consumers reacting to cost pressures rather than feeling financially comfortable.

The wider mood in the UK economy still looks fragile. Reuters reported on 23 April that GfK’s consumer confidence index fell to its lowest level since October 2023, with households growing more worried about prices and the broader economic outlook amid the Iran war and rising energy costs.

That leaves March’s retail improvement looking more like a short-term lift than clear evidence of a stronger recovery. For retailers, the main question is whether consumer spending can hold up as inflation risks spread through the economy and shoppers remain cautious. Reuters separately reported that UK companies are seeing cost pressures build at a record pace, adding to concerns over the months ahead.