MNI 5 THINGS: UK Retail Sales Drop on Lower Fuel Sales

By Jamie Satchithanantham and Laurie Laird

     LONDON (MNI) - The following are the key points from the ONS' retail sales

data release published Thursday by the Office for National Statistics.

     - Retail sales will subtract 0.03pp from Q1 GDP after a disappointing start

to the year, blighted by weather extremes. Sales volumes growth was down 1.2% in

March, double the Bloomberg 0.6% market consensus, and followed February's 0.8%

gain and January's flat outturn.

     - Snowy weather was to blame for the March drop. While weakness was

observed over all main categories, a 7.4% m/m drop in fuel sales led the way

lower.

     - Excluding fuel, sales retreated by an as-expected 0.5%, with strength in

department store sales, linked to Easter and Mothering Sunday promotions,

keeping the decline in check.

     - Die-hard shoppers appeared to have indulged in a spot of internet

shopping while snowed in, with on-line sales rising 2.0% between February and

March to a record-high 17.4% of total retail sales values.

     - Retail price inflation has ebbed, in line with broader consumer price

inflation. The retail deflator increased by 1.9%, down from 2.5% in February,

and the smallest increase since January of 2017.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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