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British retail sales unexpectedly rose 0.4 per cent in March, before Donald Trump announced sweeping tariffs on US trading partners, boosted by increasing sales in clothing and outdoor shops.
Friday’s monthly data from the Office for National Statistics showed that the volume of goods bought exceeded expectations of economists polled by Reuters, who had predicted a 0.4 per cent contraction.
The figure followed a 0.7 per cent increase in February and a strong rise in January.
In the three months to March, a less volatile measure of spending, sales were up 1.6 per cent compared with the previous three months.
Clothing and outdoor retailers reported that good weather boosted sales. These increases were partly offset by falls in supermarket sales.
“The bigger picture shows retail sales are up across the quarterly and annual period, but are still a little below pre-pandemic levels,” said Hannah Finselbach, ONS senior statistician.
However, the retail sales data does not take in the impact from Trump’s tariff shock in April.
Separate data published on Friday by research company GfK showed that consumer confidence fell four points to minus-23 this month, the lowest level for well over one year.
In early April, the US president announced steep “reciprocal” tariffs on dozens of America’s trading partners, and a 10 per cent duty on the UK, in a move that convulsed global markets.
The costs of many utilities for UK consumers also rose in April, with road and stamp duty tax also rising.
This is a developing story