UK consumer spending expected to rise in March — Bloomberg

The British Retail Consortium (BRC) and Barclays have forecast an increase in UK consumer spending in March, despite looming utility bill hikes and a challenging geopolitical landscape. Their data points to a 1.1% rise in retail sales year-on-year. BRC chief executive Helen Dickinson noted that consumer demand had strengthened, although the figures could be distorted by the earlier Easter holiday this year.

Above-inflation wage growth has enabled households to build up a financial buffer, sustaining their interest in shopping. The Barclays survey revealed a growing interest in domestic products, particularly in light of the new US tariffs, with consumers actively looking for British-made goods.

However, experts warn that the government's plans to raise business taxes could negatively impact current spending trends. Retailers are preparing to pass on an additional £7 billion ($9.24 billion) in costs to customers, warning of future price hikes. Meanwhile, many households, anticipating rising basic expenses, have already begun to adjust their spending habits.

Official statistics are set to be released on April 25.