Hopes of Easter bounce for shops are dashed as retail sales flatline

Hopes of Easter bounce for shops are dashed as retail sales flatline

Hopes of an Easter bounce for shops have been dashed after retail sales flatlined last month.

Volumes were unchanged in March, with rises in fuel purchases offset by falls in food – and high prices said to be turning consumers off.

The lacklustre performance will raise concerns about the UK’s economic recovery after slipping into recession at the end of last year.

The IMF slightly downgraded its forecasts earlier this week, while the Bank of England is wrestling with when to start cutting interest rates.

In a small bright spot, February’s retail sales data was revised up from a previous estimate of zero growth to 0.1 per cent.

ONS senior statistician Heather Bovill said: ‘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.’

The ONS said sales of automotive fuel had risen 3.2% while non-food store sales rose 0.5%. Food stores had seen their sales drop 0.7% and there was a 1.5% fall in non-store retailing.

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