UK retail sales volumes fell sharply in March, official figures have revealed, with cold weather cited by economists as a key factor.
Data published yesterday by the Office for National Statistics showed retail sales volumes fell by 0.7% month-on-month on a seasonally-adjusted basis in March, a slightly less steep fall than the 0.8% drop which had been predicted by the City.
The drop in sales in March followed a 2.1% month-on-month leap in volumes in February.
Retail sales volumes over the first quarter as a whole were up 0.4% on the final three months of last year. The sales figures did nothing to answer the question of whether or not the UK recorded a triple-dip recession in the opening three months of this year.
UK gross domestic product fell by 0.3% in the final quarter of 2012.
A further drop in the first quarter of this year would mean the UK had suffered its third recession since 2008.
Economists view this as a very close call, with first-quarter UK GDP figures due later this month.
Figures published on Wednesday by the Scottish Government showed that the economy north of the Border is clear of any immediate danger of triple-dip recession. These figures showed Scottish GDP rose by 0.5% in the final quarter of 2012. Martin Beck, UK economist at consultancy Capital Economics, said: "March's fall in the official measure of retail sales volumes was unsurprising, given that month's unusually severe weather.
"This still left sales up in the first quarter of 2013 as a whole. Nonetheless, shoppers may not be enough to save the economy from a 'triple-dip' recession."
UK retail sales volumes in the textiles, clothing and footwear category fell by 3.1% month-on-month in March.
Sales in the non-specialised category, which takes in department stores, dropped by 4%.
The household goods category recorded a 6.2% drop in sales. But food sales rose by 0.9%.
Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "Retail sales fell back in line with expectations in March, as they were clearly hit by cold weather hitting footfall and sales of clothing.
There was also clearly a corrective element, after sales had spiked up in February."
However, he added: "Looking ahead, recent developments are generally worrying for consumer spending prospects. Purchasing power is being squeezed anew by rising inflation and very low earnings growth, while the labour market is stuttering."
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