Consumer card spending in the UK grew 4.5% year-on-year in April, the greatest uplift since June 2023, boosted by sunny weather and the Easter weekend that this year fell in April as opposed to March in 2024.
For the first time since 2019, all retail, hospitality and leisure subcategories saw growth, according to the latest Barclays Consumer Spend report, which combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending.
Overall confidence in household finances “remains resilient” at 70%, while 74% feel able to live within their means – both consistent with March’s figures (70% and 73%, respectively).
This positive outlook is reflected in the performance of non-essential spending, which was up 5.1% year-on-year, significantly higher than March’s 2.2% increase and the highest growth since 2023.
Spending on clothing saw a 3.6% growth, with a transaction growth of 6.2%, while pharmacy, health and beauty saw a 15.1% spend growth and a 5.5% transaction growth.
Research conducted in late April showed that seven in 10 UK consumers (72%) were concerned about the impact tariffs could have on their household finances, although that was an improving picture compared to the start of the month (77%). Over a quarter (27%) reported trying to save more money each month to build up a buffer, in case prices rise in the future.
Consumers are also prioritising ‘home-grown’ and locally-made products, with seven in 10 (68%) of UK shoppers saying they want to support UK businesses by buying more home-grown products. When it comes to clothing and accessories, 27% say they are planning to buy more or switch to British made products.
Consumers are also cutting back on self-care to save money. One in five (22%) of female respondents are now opting to do at-home treatments, instead of visiting a salon, while 14% are requesting longer lasting or lower maintenance hair and beauty treatments.
Karen Johnson, Head of Retail at Barclays, said: “April’s sunny weather inspired consumers to embrace the best of Britain, with all retail, hospitality, and leisure subcategories in growth for the first time in over five years.
“While the long-term impact of any tariffs on household finances remains to be seen, given Thursday’s announcement of a UK/US trade deal, shoppers are demonstrating a commitment to supporting British business, while still carefully managing their money.”
Julien Lafargue, Chief Market Strategist, Barclays Private Bank and Wealth Management, added: “While the world continues to grapple with unprecedented levels of trade uncertainty, UK economic sentiment has been surprisingly positive recently, supported by a resilient consumer. The recent decision by the Bank of England to further lower interest rates should add to this momentum.
“Similarly, the trade agreement reached between the US and the UK should provide some much needed visibility to businesses. That said, growth is likely to remain muted in absolute terms. These positive developments may only partially offset the consequences of a softer labour market, and a challenging economic backdrop in the rest of the world.”