Retail sales in the United Kingdom increased by 0.5% in April compared to March, a significant slowdown from the revised 1.6% rise seen in the previous month. The deceleration is attributed to higher petrol prices driven by the ongoing conflict in Iran, which left consumers with less disposable income for nonessential goods.
Slower Growth Amid Rising Costs
According to data released by the Commerce Department on Thursday, March had recorded the largest monthly increase in retail spending in over three years, largely due to a rapid spike in petrol prices. Excluding petrol sales, retail sales rose by a more modest 0.3% in April.
Mixed Performance Across Sectors
Spending was uneven across different retail categories. Department stores experienced a 3.2% decline in sales, while furniture and home furnishings stores saw a 2% drop. On the other hand, online retailers reported a 1.1% increase. The data provides only a partial view of consumer spending, as it does not include expenditures on travel, hotel stays, or other services. The only services category included—restaurants—showed a 0.6% rise in sales.
The figures underscore the impact of elevated petrol prices on household budgets, as the Iran war continues to influence global energy markets. Consumers are increasingly prioritising essential spending, leaving less room for discretionary purchases.
