UK Consumer Spending Falls for First Time Since Late 2024, Barclays Data Shows
UK consumer spending fell for the first time since late 2024, according to Barclays card data. Elevated energy costs and the pressure of interest rates are now visibly weighing on retail and services activity.
Barclays' May report on consumer card spending showed UK household outlays fell on a year-on-year basis for the first time since the final quarter of 2024. The data pointed to a clear slowdown in clothing, restaurants and entertainment in particular.
Barclays economists said high energy and fuel prices linked to the Iran war are adding pressure on households, while the Bank of England's decision to hold rates steady has further weakened consumer confidence. The report suggests the lagged effects of monetary tightening are finally showing up in spending.
Analysts say the drop in outlays could pull down UK growth forecasts in the coming quarters. The Bank of England's Monetary Policy Committee could begin debating a rate cut at its June meeting, though sticky inflation may limit how quickly any move arrives.
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