UK retail sales fall at fastest pace in nearly a year in April

Retail sales volumes drop 1.3% month-on-month, worse than market forecast

UK retail sales fell more than expected in April, posting their steepest monthly decline in nearly a year as consumers cut spending amid higher energy costs linked to the war in Iran, official data showed Friday. Retail sales volumes decreased 1.3% month-on-month in April, following a revised 0.6% rise in March, according to the Office for National Statistics (ONS). The figure marked the sharpest monthly fall since May 2025 and was weaker than market expectations of a 0.6% decline. Motor fuel sales dropped 10% in April, the largest monthly fall since November 2020, when restrictions during the coronavirus pandemic weighed heavily on mobility. The latest figures add to signs that the energy shock from the US-Israeli war in Iran is weighing on the UK economy, as households face higher fuel costs and weaker purchasing confidence. A separate consumer confidence survey released earlier Friday showed that UK consumers remained cautious, with weaker appetite for major purchases and rising pressure on household budgets. Although the impact on households has so far been concentrated mainly in fuel prices, analysts expect broader pressure in the coming weeks as higher wholesale gas and power costs feed through to energy bills. The UK’s household energy price cap is set to rise 13% this summer, adding to concerns that inflationary pressures could further restrain consumer spending.