British retail sales jumped 0.7% in March, beating the 0.1% rise economists expected. The Office for National Statistics said the surge came as motorists loaded up on fuel amid the Iran‑driven oil shock. February had been revised to a 0.6% decline, making the March rebound a stark reversal. Consumer sentiment remained fragile, but the fuel‑driven spike gave the market a brief lift.

Fuel sales volume surged 6.1% in the month, according to retailers, while clothing outlets benefited from milder weather and computer‑and‑telecom stores rode new product launches. Over the three‑month period to March, overall sales volumes rose 1.6% versus the prior quarter, driven largely by a strong January, indicating the sector contributed solidly to Q1 growth. These sectoral gains helped offset weaker performance in discretionary categories.

The retail uptick mirrors a broader business‑activity bounce in April, as firms hurried to lock in supplies amid fears of further price hikes and shortages. Yet household confidence slipped to its lowest since 2023, per a GfK survey, suggesting rising energy costs could soon erode the momentum. March therefore stands as a brief high‑water mark for UK retail spending.