UK retail sales fall at fastest rate since first pandemic lockdown

British retail sales have tumbled this month by the most since April 2020 when most ​non-food shops were closed at the start of ‌the COVID-19 pandemic, a survey showed this week.

The Confederation of British Industry’s said its monthly gauge of retailers’ annual ​change in sales volumes sank to -52 in March ​from an already weak -43 in February, and businesses ⁠expected only a marginal improvement to -49 in April.

“Retailers ​report that weak economic conditions continue to weigh on ​household spending, with subdued activity also evident across the broader distribution sector,” CBI Lead Economist Martin Sartorius said.

The survey of 50 ​retail chains took place between February 25 and ​March 13, mostly falling after the start of the US-Israeli war ‌on ⁠Iran.

The conflict has pushed up petrol prices in Britain and the Bank of England expects it will increase broader inflation later this year.

The survey did not ​directly attribute ​the fall ⁠in sales to the conflict. The CBI said it increased the necessity for the ​government to ease the cost impact to ​businesses ⁠from new employment rights and tax.

“The conflict in the Middle East – which risks fuelling price pressures and squeezing ⁠household ​budgets – underscores the need for ​the government to take further action to lower the cost of doing ​business for distribution firms,” Sartorius said.