UK Consumer Spending Falls for First Time Since Late 2024
Barclays credit-card data show UK consumer spending fell 0.3% year-on-year in April, the first contraction since the final quarter of 2024. Iran-war fuel costs, still-high interest rates and a softening labour market are squeezing household budgets.
Barclays said April's sharpest declines hit restaurants and non-essential leisure. Households are shifting wallet share toward groceries and fuel, with supermarkets such as Sainsbury's and Tesco still posting nominal sales growth even as basket volumes shrink.
The data come a week after the Bank of England held its policy rate at 4.75% citing Iran-war uncertainty. Some UK economists say 2026 growth forecasts may have to be cut if the conflict drags on.
The government noted sterling has held steady and that wages are still outpacing inflation. The British Retail Consortium's chief economist warned, however, that another weak month in May could trigger summer job losses across the high street.
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