Consumer card spending increases 4.5 percent in April

The warm weather in the UK and the late Easter weekend boosted essential and non-essential spending in April, according to Barclays' monthly Consumer Spend report.

Barclays reports that consumer card spending grew 4.5 percent year-on-year last month, the biggest uplift since June 2023, and above the latest CPIH inflation rate of 3.4 percent, for the first time in over two years.

Non-essential spending reached a 21-month high, increasing by 5,1 percent, while essential spending returned to growth after two months of decline, at 3.1 percent.

Retail spending rose by 6.8 percent year-on-year, with Barclays adding that every retail subcategory reported growth for the first time since tracking of these categories began in 2019. This included clothing spending up 3.6 percent, while transaction growth hit 6.2 percent. Pharmacy, health and beauty also saw spending growth of 15.1 percent.

Barclays also adds that research conducted in late April showed that seven in 10 UK consumers (72 percent) were concerned about the impact tariffs could have on their household finances, although this was an improving picture compared to the start of the month (77 percent). Over a quarter (27 percent) reported trying to save more money each month to build up a buffer, in case prices rise in the future.

UK shoppers are also prioritising British-made products, with seven in 10 (68 percent) looking to support UK businesses, while one in eight are willing to pay a premium for British or local products and brands, with this group also adding that they are happy to pay 22 percent more on average.

Karen Johnson, head of retail at Barclays, said in a statement: “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.