Last reviewed: May 2026
TL;DR- UK retail sales volumes fell 0.6% in April 2026, ONS data shows.
- Petrol station sales recorded their largest monthly fall since 2020.
- Food store sales also declined as households tightened spending.
- The drop follows a relatively strong March driven by Easter spending.
- Consumer confidence remains fragile despite falling inflation.
UK retail sales fell by 0.6% in April 2026 compared with the previous month, with petrol purchases posting their steepest monthly decline in six years, according to figures published by the Office for National Statistics. The data points to continued pressure on household budgets despite inflation falling to its lowest level since 2021.
What the ONS Data Shows
The ONS retail sales release covering April 2026 showed a 0.6% fall in the volume of goods sold, following a 0.4% rise in March. On an annual basis, retail sales volumes were broadly flat compared with April 2025. Petrol station sales fell sharply in the month, with analysts pointing to a combination of lower pump prices reducing the cash value of sales and a behavioural shift toward reduced discretionary driving amid ongoing cost pressures.
Food store sales declined by 0.3% on the month, reversing part of the March gain. Non-food stores showed a mixed picture, with clothing and household goods retailers recording small falls while online retailers held broadly steady. The data is adjusted for seasonal effects, though the ONS noted that the timing of Easter in 2026 introduced some volatility between March and April figures.
Why Petrol Purchases Are Falling
The sharp fall in petrol station sales reflects two distinct factors. First, average pump prices fell in April 2026 as global crude oil prices eased, reducing the cash value of each fill even where volumes were unchanged. Second, the RAC and AA have both reported a trend of UK drivers consolidating journeys and reducing discretionary mileage in response to sustained cost of living pressure on disposable incomes.
Electric vehicle uptake also plays a role in the longer-term trend. The share of new car registrations accounted for by battery electric vehicles reached approximately 20% in early 2026, according to the Society of Motor Manufacturers and Traders. As more EVs enter the fleet, petrol demand structurally declines over time regardless of short-term price movements.
Consumer Spending Outlook
The GfK Consumer Confidence Index for May 2026 showed a reading of minus 20, unchanged from April. The index measures how households feel about their own financial situation and the wider economy. A reading below zero indicates more pessimists than optimists. Despite the headline figure remaining negative, the component measuring whether now is a good time for major purchases improved slightly, suggesting some households are beginning to feel the benefit of lower inflation.
Wages in the UK grew by 5.6% in the three months to March 2026, according to ONS Labour Market Statistics, outpacing inflation for the fifteenth consecutive month. Real wage growth - earnings above inflation - has been slowly rebuilding household purchasing power lost during the 2022-2023 inflation surge, though the cumulative price level remains elevated relative to 2021.
Frequently Asked Questions
Why do retail sales matter for household finances?
Retail sales data is a key indicator of consumer spending, which accounts for the majority of UK economic output. Falling retail volumes can signal that households are cutting back due to cost pressures, which in turn affects employment and wage growth across retail and related sectors. The Bank of England monitors retail data as one input into its inflation and interest rate assessments.
What is driving down petrol prices in 2026?
UK pump prices are influenced by global crude oil prices, sterling exchange rates and refinery margins. Crude oil prices eased in early 2026 as global demand growth slowed and OPEC production decisions increased supply. The UK government does not directly set pump prices, though fuel duty and VAT together account for a significant share of the pump price.
How does consumer confidence affect the economy?
When consumers feel uncertain about their finances or the economy, they tend to save more and spend less, which reduces demand for goods and services. This can slow economic growth and affect business investment decisions. The GfK survey, commissioned by the ONS, has tracked UK consumer confidence since 1974 and is widely used by economists and policymakers as a leading indicator.
How We Verified This
This article draws on ONS Retail Sales data for April 2026, GfK Consumer Confidence Index May 2026, ONS Labour Market Statistics for March 2026, and SMMT vehicle registration data for Q1 2026.
