FX.co ★ Significant Decline in UK Retail Sales as Survey Indicator Falls to -41 in March

The UK's retail sector faced a substantial decline in March, according to the latest CBI Distributive Trades Survey. The survey's sales balance indicator has nosedived to -41, compared to -23 in February, marking a sharp decrease in retail activity. The data, which was updated on 25 March 2025, suggests a challenging environment for retailers, compounding the sector's economic difficulties in recent months.

This steeper-than-expected drop indicates that UK consumer demand remains weak, potentially exacerbated by ongoing economic uncertainties and rising living costs. February's figure, at -23, had already indicated a downturn, but the March data underscores an accelerated decrease in retail sales volume.

Policymakers and industry leaders are now bracing for further impacts on the retail sector if the current trend continues. The factors contributing to this decline are expected to be under scrutiny, as stakeholders seek solutions to reverse the downturn and invigorate consumer spending within the UK economy.