Warm weather helps lift UK retail sales

(Sharecast News) - UK retail sales rose by more-than-expected in March, official data showed on Friday, fuelled by the sunny weather.

According to the Office for National Statistics, retail sales volumes were estimated to have risen by 0.4%, following a revised 0.7% increase in February. The ONS had initially estimated sales to have risen by 1% in February.

Analysts had been expecting a 0.4% decline in March.

Year-on-year, sales rose 2.6%, also well ahead of forecast, for a 1.8% increase.

The ONS said much of March's rise was driven by clothing and outdoor retailers, who reported that the warmer, sunny weather had boosted fashion and DIY sales in particular.

The UK saw the third-sunniest March on record, according to the Met Office, the ONS noted.

Overall, non-food stores sales volumes rose by 1.7% over the month, while clothing stores sales volumes were 3.1% stronger.

In contrast, food store sales volumes were down 1.3%, following a 2.2% slide in February. The ONS said supermarkets were the biggest fallers.

It noted: "The recent good weather helped to boost sales across a variety of sectors, with garden centres reporting robust trading. The sunshine also helped to improve sales of DIY goods and clothing.

"However, it was another poor month for food sales, particularly within supermarkets."

Overall sales volumes rose by 1.6% in the three months to March end, or by 1.7% on a year-on-year basis.

Erin Brookes, European retail and consumer lead at Alvarez & Marsal, said: "Following a strong start to the year, we've seen another defiant uplift in retail sales this month.

"However, retailers aren't out of the woods yet given the challenging and fast-evolving geopolitical backdrop.

"Consumer confidence remains fragile, with ongoing uncertainty around the impact of US trade tariffs, rising household bills and pressure on retailers' margins."

The latest GfK consumer confidence index, also released on Friday, fell sharply in April, down four points to -23, as concerns about the long-term health of the economy mounted.