UK gross domestic product (GDP) growth will likely cool this quarter after retail sales data showed a sharp fall in April, EY analysts said.
Sales over the course of April fell 2.3% month-on-month, against a 0.2% decline in March and worse than expectations for a 0.4% drop.
Following the data on Friday, EY said GDP growth would be better than April in May but not be as strong over the second quarter, after the UK exited recession earlier this year.
“It's clear that the retail sector is still struggling to generate much momentum,” EY economist Peter Arnold said.
Highlighting softer composite Purchasing Managers’ Index data on Thursday, Arnold added: “It suggests that the UK is likely to see a weaker outturn for GDP growth in Q2, after Q1's very strong performance.”
Deloitte's Oliver Vernon-Harcourt said retailers needed to focus on offering deals for consumers on a range of budgets after the drop in sales.
"Though consumer confidence continues to rise, many remain apprehensive and are not yet loosening their purse strings, especially on non-essential items and goods such as clothing and footwear," he said.
"Consumers are focused on value, with the likes of own-label food remaining resilient."
Subsiding inflation coupled with growing wages should lead to an uptick in sales in the months ahead though, Capital Economics' Ashley Webb noted in a more reassuring tone.
"The prospect of interest rates starting to be cut this summer and the boost to real household disposable income from falling inflation implies confidence will climb further and the recovery in consumer spending will continue throughout this year."