UK retail sales fall by most in nearly a year, ONS data shows
April Retail Sales Decline and Economic Context
LONDON, May 22 (Reuters) - British retail sales fell by the most in nearly a year in April, according to official figures published on Friday that added to signs of waning consumer spending against the backdrop of the Iran war and rising energy costs.
ONS Retail Sales Data and Market Expectations
Retail sales volumes tumbled by 1.3% on the month in April, the biggest monthly decline since May 2025, when they dropped by 1.4%, the Office for National Statistics said. They rose 0.6% in March.
Economists polled by Reuters had mostly expected a monthly fall of 0.6% in April sales volumes.
Fuel Volumes and Consumer Behavior
The ONS said fuel volumes fell in April as users were conserving fuel after strong growth in March when motorists stocked up as prices rose.
Year-on-Year Comparison
Compared with a year earlier, volumes were flat, against economists' expectations of a 1.3% rise.
Consumer Confidence and Retailer Sentiment
Impact of Geopolitical Events and Cost of Living
"Concerns around the impact of the Iran conflict on the cost of living, alongside higher mortgage costs and continued pressure on household finances, are weighing heavily on consumer confidence," said Samuel Edwards, head of client portfolio management at financial services firm Ebury.
Survey Results on Consumer Confidence
Earlier on Friday, a survey showed low levels of consumer confidence rose only slightly in May with households the least willing to make big item purchases in nearly a year and a half.
Retailer Perspectives
Major British retailers say uncertainty over the impact of the Iran war is weighing on their businesses and customers. They also say higher tax and more regulation are holding them back.
Notable Exceptions in Retail Performance
Some firms are bucking the trend. Fashion retailer Next posted better-than-expected first quarter sales and electricals retailer Currys edged-up its profit outlook.
Government Borrowing and Economic Challenges
Separate ONS data showed bigger-than-expected government borrowing last month, underscoring the scale of the challenge facing finance minister Rachel Reeves.
(Reporting by Suban Abdulla; additional reporting by James Davey; editing by William James)
