The volume of sales including auto fuel fell 0.5 per cent from February, the Office for National Statistics said in London Thursday. Economists forecast a 0.4 per cent increase, according to the median estimate in a Bloomberg News survey. Sales excluding auto fuel rose 0.2 per cent, less than forecast.
Separate figures showed the budget deficit in the fiscal year ended March narrowed more than officials had predicted. The shortfall last month was the smallest for any March in 11 years.
Net borrowing excluding public sector banks was 7.4 billion pounds. Revenue rose 3 per cent and spending fell 3.1 per cent. It left the full year deficit at 87.3 billion pounds, below the 90.2 billion pounds the Office for Budget Responsibility forecast last month.
The retail sales figures suggest the economy may have lost momentum in the first quarter. Prime Minister David Cameron is struggling to turn the recovery into votes for his Conservative Party, with polls deadlocked two weeks before the election.
Bloomberg News, edited by ESM
