London, United Kingdom. British consumers cut spending in April for the first time since November 2024, shifting toward essentials and away from leisure as economic uncertainty tied to the Iran war weighed on confidence, surveys showed this week.
Barclays card spending slips and travel falls
Barclays said spending on its credit and debit cards fell 0.1% year-on-year in April, following a 0.9% increase in March. Its survey showed heavy declines in spending on hotels and travel, with card spending on travel down 5.7% year-on-year.
Barclays chief UK economist Jack Meaning said the data indicated consumers were adapting to the shock from the Middle East, including by building up a savings buffer. He added that with uncertainty high both at home and abroad, it was unsurprising to see confidence falling.
BRC reports sharp drop in retail sales amid Easter timing effects
A separate survey of retailers from the British Retail Consortium showed retail sales fell 3.0% year-on-year in April, after a 3.6% rise in March. The BRC said the April figure was affected by the timing of the Easter holidays.
Taking March and April together to account for different Easter timings this year and last year, the BRC said retail sales were up 1.5% on the year.
BRC chief executive Helen Dickinson said weak consumer confidence also contributed, with fears that the Middle East conflict would push up living costs leading shoppers to rein in spending. She cited weak readings for sectors such as furniture.
Big-ticket spending declines and outlook depends on uncertainty duration
Both surveys reported a reduction in spending on big-ticket items as households took a more cautious financial stance, in line with other indicators showing faltering morale.
Meaning said the key unknown for the UK outlook was how long the uncertainty would last.
How are changes in consumer confidence affecting your spending on travel and big-ticket items?
