Spending falls -0.1 percent in April after 16 months of growth, but consumers show resilience amid ongoing uncertainty

• Non-essential spending declined -0.3 percent, while essential spend was propped up by a 10.4 percent uplift in fuel
• While 72 percent cite cost-of-living concerns, the majority remain confident in their household finances, with 51 percent trying to build a savings buffer
• Travel spending dropped -5.7 percent, with bookings impacted by cost and disruption concerns
• Eating & drinking was flat at 0.2 percent, but the London Marathon contributed to a 35.5 percent boost for the Capital’s pubs at the end of the month
• 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 declined -0.1 percent year-on-year in April – the first fall since November 2024 (-0.5 percent) and below the latest CPIH inflation rate of 3.4 percent. Non-essential spending declined (-0.3 percent), after a 1.1 percent increase in March, but essential spend grew 0.3 percent, as fuel surged 10.4 percent – its greatest rise since December 2022.

Confidence in the global economy fell to 20 pe cent last month – its lowest level since April 2025, when Trump announced ‘Liberation Day’ tariffs. Confidence in the UK economy, however, recovered marginally to 22 percent (from 21 percent in March).

Resilient consumers manage ongoing uncertainty 

Consumers’ confidence in their household finances and job security both remained largely on par with March, dipping by one percentage point to 64 percent and 43 percent respectively. Confidence in non-essential spending dropped to 49 percent, its lowest level since March 2023 (48 percent).

Almost seven in 10 (72 percent) say they expect tensions in the Middle East to impact the cost of living throughout 2026, with energy bills (85 percent), inflation (84 percent) and food prices (84 percent) the greatest causes for concern.

However, the majority remain resilient; 52 percent feel able to manage their day-to-day finances without significant stress and the same proportion feel confident in their ability to make good financial decisions in uncertain times.

Three in five (62 percent) report making financial adjustments in response to current uncertainty. Of this group, the most cited actions are cutting discretionary spending (45 percent), limiting energy usage at home (43 percent) and delaying major financial decisions (26 percent). A further 34 percent report reviewing their household budget, while 51 percent say they are trying to build a precautionary savings buffer in case of future cost increases.

Travel spending stalls

Travel spending declined -5.7 percent in April, after a -3.3 percent fall in March, with airlines down -8.3 percent. This comes as consumers cite concerns about travel costs (70 percent), and travel disruption (62 percent) in light of the Middle East conflict. One in six (16 percent) say they’re putting off holiday decisions until they feel the outlook has stabilised.

However, 13 percent say despite cost pressures, they’re still prioritising travel/holidays this year. One in five (19 percent) are planning a “staycation”, with saving money (43 percent), reducing the risk of uncertainty (35 percent), and avoiding air travel (24 percent) contributing to their decision.

Spending on public transport was down -3.5 percent, after 52 percent of Londoners said they were impacted by the month’s tube strikes, which took place between 21^st-24^th April. Of this group three in 10 avoided non-essential trips (29 percent) and changed their mode of transport (28 percent).

Streaming sidesteps slowdown, while London enjoys marathon boost

Digital content & subscriptions remained in growth, up 9.2 percent, led by streamflation and helped by the popularity of TV seriesEuphoria, The Testaments and The Pitt. Beauty spending was up 4.6 percent, however this was a slowdown from the 6.3 percent growth in March, and below the sector’s 9.1 percent 12-month average.

Spending on eating and drinking flatlined in April, at 0.2 percent, however the London Marathon contributed to a welcome lift for the Capital, with pub transactions up 35.5 percent week-on-week on Sunday 26^th April, and food & drink transactions up 22.5 percent. This comes as 55 percent of Londoners say they are in favour of a two-day marathon in 2027, with 53 percent agreeing it would provide London and its businesses with a boost.

Jack Meaning, Chief UK Economist at Barclays, said: “This data shows consumers are already adapting in response to the shock from the Middle East, for instance, by building up a savings buffer. With uncertainty high both at home and abroad, it is unsurprising to see confidence falling. The key unknown for the UK outlook is how long this uncertainty will last. If confidence remains subdued for too long, and consumers continue to limit their spending as a result, it will be a challenge for households and businesses to weather the storm.”

Karen Johnson, Head of Retail at Barclays, said: “In April, we saw consumers taking precautionary action in response to renewed cost-of-living concerns – cutting non-essential spending, building their savings and looking for ways to reduce their outgoings. There’s no doubt people will continue to pay close attention to their budget amid ongoing uncertainty, however it’s reassuring to see that the majority feel confident in their ability to manage their day-to-day spending and to make sound financial decisions.”

Image courtesy of Unsplash. Photo credit: Eduardo Soares.