By Ed Frankl

U.K. retailers proved resilient in March, unexpectedly posting a rise in sales, though tariffs and the resulting economic uncertainty could stifle business in the months ahead.

Retail sales volumes climbed 0.4% on month in March from a month earlier, a third monthly increase after a 0.7% rise in February, the Office for National Statistics said Friday. Economists polled by The Wall Street Journal had instead expected a 0.4% decline.

In January through March, retail sales grew 1.6% from the previous quarter, the fastest pace since the second quarter of 2021.

"The bigger picture shows retail sales are up across the quarterly and annual period, but are still a little below pre-pandemic levels," ONS senior statistician Hannah Finselbach said.

Clothing and outdoor retailers reported that good weather boosted sales, partly offset by falls in supermarkets, the ONS said.

However, the outlook could turn gloomier for the sector. Consumer confidence sank this month on fears that trade tariffs will cause a rebound in inflation, according to separate data also published Friday.

Indeed, March's retail sales might be as good as it gets in the near term as confidence slides, Capital Economics economist Alex Kerr said.

"The drop in consumer confidence in April after the U.S. tariff chaos suggests that households may start to spend more cautiously in the coming months," he wrote in a note to clients.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

April 25, 2025 03:12 ET (07:12 GMT)

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