British Retail sales rose more than expected last month to demonstrate a consumer boom continues unabated and raising the likelihood of higher interest rates soon.
Separate data showing the world's fourth-largest economy got off to a slower start than anticipated in the first quarter were shrugged off by some analysts as they were only preliminary estimates and could soon be revised upward.
The British Office for National Statistics said retail sales rose 0.6 per cent on the month in March to stand 6.4 per cent higher than a year earlier.
That was well above forecasts for a 0.2 per cent rise and kept the underlying three-month on three-month growth rate steady and strong at 1.9 per cent.
The data are sure to be of concern to Bank of England policymakers, who have been raising interest rates gradually since last November to cool a consumer boom that has been fuelled by rampant borrowing and soaring house prices.
So far those modest interest rate rises have done little to rein in the consumer and most economists expect a third 25 basis point rise to 4.25 per cent next month.
"The strength of retail sales in March is further evidence that the two interest rate hikes so far have had little impact on consumer spending and borrowing," said Howard Archer, economist at Global Insight.
Interest rate futures fell slightly while sterling rose a third of a cent against the dollar as the data increased the likelihood of another British rate hike soon.