Card Spending Growth In April Saw Greatest Uplift Since June 2023

Consumer card spending increases 4.5 per cent in April, as sunshine and Easter weekend boost retail and hospitality 

• For the first time since 2019, all retail and hospitality & leisure subcategories saw growth
• Non-essential spending reached a 21-month high, while essential spending returned to growth after two months of decline
• Consumer confidence in household finances remains resilient, in spite of ongoing uncertainty around the impact of tariffs on the price of goods
• Shoppers are prioritising British-made products, and one in eight are willing to pay a premium for UK-based brands
• The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending 

Consumer card spending grew 4.5 per cent year-on-year in April – the greatest uplift seen since June 2023, and above the most recent CPIH inflation rate (3.4 per cent) for the first time in over two years. The Easter weekend and the sunny weather boosted both retail and hospitality, while essential spend returned to growth after two months of decline, at 3.1 per cent.

Research conducted in late April showed that seven in 10 UK consumers (72 per cent) 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 per cent). Over a quarter (27 per cent) reported trying to save more money each month to build up a buffer, in case prices rise in the future.

Overall confidence in household finances remains resilient at 70 per cent, while 74 per cent feel able to live within their means, both consistent with March’s figures (70 per cent and 73 per cent respectively). This positive outlook is reflected in the performance of non-essential spending, which was up 5.1 per cent year-on-year, significantly higher than March’s 2.2 per cent increase, and the highest growth since 2023.

Shoppers prioritise ‘home-grown’ and locally-made products

Seven in 10 (68 per cent) UK shoppers say they want to support UK businesses by buying more home-grown products. One in eight (12 per cent) are willing to pay a premium for British or local products and brands, with this this group happy to pay 22 per cent more on average.

Fruit and vegetables topped the list (46 per cent) of the British-made products shoppers plan to buy more of or switch to, followed by dairy (39 per cent), meat (39 per cent), seafood (29 per cent), clothing and accessories (27 per cent) and alcoholic drinks (20 per cent). More broadly, three in five (59 per cent) say they plan to buy more local and/or seasonal British food.

The weather, combined with this growing preference for local produce, likely contributed to the 11.4 per cent uplift in transactions at food and drink specialist stores, such as butchers, delis and fishmongers. Meanwhile spending at supermarkets moved back into growth for the first time since January 2025, up 6.1 per cent.

Warm weather boosts hospitality, retail, and entertaining at-home

The April sunshine and the long Easter weekend prompted shoppers to visit the high street in higher numbers. For the first time since tracking of these categories began in 2019, all retail and hospitality & leisure subcategories saw growth. Overall retail was up 6.8 per cent, while in-store retail spending increased 6.9 per cent, after declining -1.9 per cent year-on-year in March.

Garden centres had a bumper month, with spending up 25.0 per cent versus the same period last year – also the category’s highest growth on record – as people prepared their gardens for the summer season. The pharmacy, health & beauty category also enjoyed a particularly strong month, increasing 15.1 per cent.

Meanwhile, home improvements and DIY stores were up 4.0 per cent, likely boosted by the recent changes to stamp duty thresholds. Data from Barclays Property Insights report revealed a 50 per cent surge in Barclays mortgage completions in March, as buyers rushed to complete purchases to secure tax savings ahead of the deadline. Many of these new homeowners may have begun painting and redecorating, contributing to an increase in spending at stores selling DIY supplies.

Socialising in the sunshine helped the overall hospitality & leisure sector grow 6.7 per cent – the highest increase since 2023 – while spending at bars, pubs and clubs reached a 16-month high, up 6.6 per cent.

Cost-cutting continues as shoppers spot supermarkets price matching

As cost-conscious shoppers look to get more value from their weekly shop (66 per cent), a third (33 per cent) have noticed supermarkets lowering prices to match competitor offers and three in 10 have seen more promotional offers and discounts (30 per cent).

Enhanced loyalty schemes (23 per cent), product “knockoffs” or “dupes” (21 per cent) and an improvement in own-brand products (18 per cent) have also been spotted more frequently.

When asked about the money-saving tricks they had noticed more of in recent months, 32 per cent said budget supermarkets were becoming more popular, 29 per cent noted a rise in people buying second-hand over new items, and 20 per cent cited colleagues bringing home-made food to work instead of buying lunch.

Consumers are also cutting back on self-care to save money. One in five (22 per cent) female respondents are now opting to do at-home treatments, instead of visiting a salon, while 14 per cent 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, said: “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.”

Overall growth figures

Source : Barclays

Image : Elena Abrazhevich / Shutterstock / 502432939 

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