UK March retail sales show a bigger-than-expected drop

The Office for National Statistics (ONS) published the UK’s retail trade report, which showed that the UK’s consumer spending contracted more-than-expected in the month of March.

The UK’s retail volumes came in at -1.2% in March m/m, while the annualized retail spending unexpectedly fell 1.1%. Markets had estimated a -0.5% reading on a monthly basis; while a 2.0% print was expected on yearly basis.

Retail sales excluding volatile items such as fuel also missed expectations, arriving at -0.5% m/m and 1.1% y/y.