The ONS said supermarket sales fell back from January, while household goods retailers saw demand dampened due to February’s wet weather.
Non-store retailers – including online and catalogue businesses – also saw a dip in sales volumes, with retailers suggesting shoppers had brought forward spending to take advantage of January sales.
The drop in ONS retail sales was “modest” and below forecasts, but the fall in consumer sentiment is a “a sign of things to come”, Capital Economics UK economist Ashley Webb said.
The GfK consumer confidence index fell two points to minus 21 this month, while expectations for the general economic situation over the next year dropped six points to minus 37.
“The decline in GfK consumer confidence in March… is probably the start of a bigger fall and suggests real household spending growth will soften in 2026,” Webb said.