Retail sales performed worse than expected last month, defying expectations for a consumer-led economic recovery in Britain.

The Office for National Statistics (ONS) reported that sales were flat in March, following a 0.1% upward revision last month.

The company said sales in non-food stores helped offset lower supermarket sales.

Fuel sales increased 3.2%.

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Heather Bovill, senior statistician at the Office for National Statistics, said of the overall picture: “Retail sales did not grow in March.

“Hardware stores, furniture stores, gas stations and clothing stores all saw increases in sales.

“However, these gains were offset by lower food sales and sales in department stores, with retailers saying higher prices were impacting trading.

“To put things into perspective, retail sales have increased in the last three months after a bad Christmas.”

Although performance will not be compromised Expecting to emerge from recession In the first quarter of this year, this shows that consumers are still managing their spending carefully.

Although cost of living crisis – aggravate Bank of England raises interest rates promote inflation The decline – which has severely damaged the budget – has seen wages rise faster than prices since last summer.

Separate figures from the Office for National Statistics this week showed annual inflation at 3.2%, with wages rising at 6% after discounting the impact of bonuses.

Economists generally agree that over time, consumer spending power will win out, although borrowing costs remain elevated.

An indicator of consumer confidence released on Friday showed confidence rose for the sixth consecutive quarter to its highest level since the summer of 2021.

Deloitte’s measurements showed an increase of 6.5 percentage points from the same period last year.

Its survey showed personal finances improving as inflation eased.

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Celine Fenech, the company’s head of consumer insights, said of its survey results: “It’s encouraging to see consumers, especially younger consumers, feeling more confident about their personal finances.

“Many consumers are paying less for essentials such as utility bills… However, spending on non-essentials and services fell during the quarter, meaning the improvement in confidence has not yet translated into a significant increase in spending, calling for cautious optimism ”

She added: “Consumer confidence is at its highest level in two-and-a-half years, which, coupled with the prospect of improved weather, should herald a brighter future for the consumer sector.”