ONS Retail sales data

Rajeev Shaunak, head of consumer at MHA, comments on March ONS retail figures

“An early Easter, better weather and the school holidays gave retail sales a timely March bump and the boost was better than many retailers and the market were expecting although it is likely to prove short-lived. Much of the growth was down to fuel sales driven by concerns about petrol prices as well as clothes and technology. The backdrop remains fragile however: consumer confidence is at its lowest in more than two years and budgets were already stretched entering 2026.

“Forecasters are pencilling in only a modest 0.2% month-on-month rebound in retail sales by the end of this quarter, with growth trending around 0.3% in 2027, progress, but not enough to remove the risk of continued volatility, especially if post-Easter inflationary cost pressures due to the conflict in Iran push households to rein in discretionary spend.”

Among its UK-wide locations, accountancy and advisory firm MHA has offices in Edinburgh and Aberdeen.