UK Consumer Spending Rebounds in May After April Slowdown
Consumer spending in the United Kingdom increased during May after a weaker performance in April, although spending on travel continued to decline as households remained cautious about the economic impact of the ongoing Iran conflict.
New data released on Tuesday by Barclays and the British Retail Consortium (BRC) showed that warmer weather and seasonal spending helped boost retail activity across several sectors.
Consumer Spending Returns to Growth
According to Barclays, consumer spending rose by 0.8% year-over-year in May, marking an improvement from the 0.1% decline recorded in April.
While the increase signals a recovery in consumer activity, spending growth remained below the UK’s inflation rate, which is currently running at around 3%.
The survey covered spending activity between April 27 and May 22.
Travel Spending Continues to Decline
Despite stronger overall spending, travel-related expenditure remained under pressure.
Barclays reported that travel spending fell 5.8% in May, marking a third consecutive monthly decline. Spending on airlines dropped even further, falling 12.9% compared with the same period last year.
The figures suggest that ongoing geopolitical uncertainty and concerns about the economic outlook continue to influence consumer behaviour.
Warm Weather Boosts Retail Activity
The arrival of warmer temperatures and the early May bank holiday encouraged spending across several retail categories.
Food and beverage retailers, as well as health and beauty stores, benefited from increased consumer activity. Hotels and accommodation providers also saw stronger demand, supported by domestic tourism.
Barclays noted that consumer confidence improved and returned to levels last seen in early 2026. However, around two-thirds of respondents said they were making financial adjustments in response to economic uncertainty.
Retail Sales Record Strongest Growth in Over a Year
Separate data from the British Retail Consortium painted an even stronger picture of retail activity.
Total retail sales increased by 3.7% year-over-year in May, representing the strongest monthly growth since April 2025. This compares with a 3.0% decline recorded in April.
Food sales rose by 3.9%, while non-food sales increased by 3.5%, highlighting broad-based consumer demand across multiple categories.
The BRC survey covered the period between May 3 and May 30.
Summer Shopping Drives Consumer Demand
According to BRC Chief Executive Helen Dickinson, the May heatwave played a major role in driving consumer spending.
Demand surged for summer-related products including clothing, footwear, sandals, sunglasses, fans, lighter bedding, and outdoor toys. Food retailers also benefited from increased spending linked to bank holiday barbecues and outdoor gatherings.
The strong performance demonstrates how seasonal factors can significantly influence consumer purchasing behaviour despite broader economic concerns.
Outlook for UK Consumers
While consumer spending showed signs of recovery in May, ongoing caution among households suggests that economic uncertainty remains a key factor influencing spending decisions.
Investors and policymakers will continue monitoring consumer confidence, inflation, and discretionary spending trends to assess the strength of the UK economy in the months ahead.
