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UK retail sales rise 0.7% in March

LONDON, April 24 (Reuters) - British retail sales rose by 0.7% in March, according to the first set of official figures on how the sector fared after the start of the Iran war which has pushed up fuel prices and is likely to cause broader inflation and weaker growth.

Economists polled by Reuters had mostly expected a monthly increase of 0.1% in sales volumes.

On Thursday, Britain's longest-running consumer sentiment index published by market research firm GfK fell to its lowest since October 2023 in March and suffered the biggest drop from one month to the next in a year.

Major British retailers have said uncertainty over the impact of the Iran war on shoppers is clouding their outlook and could hurt profits.

Food retailers, including Tesco TSCO.L and Sainsbury's SBRY.L, have said they are yet to see meaningful changes in consumer behaviour. But clothing chain Primark ABF.L said that while March trading was encouraging, April has so far been soft.

 (Additional reporting by James Davey
Writing by William Schomberg, editing by William James)

 ((william.schomberg@thomsonreuters.com; +44 207 542 7778; Reuters Messaging: william.schomberg.reuters.com@reuters.net))

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