Key facts
- UK consumer spending grew by 0.8% year-on-year in May, recovering from a 0.1% drop in April.
- Spending on travel declined by 5.8% in May, marking the third consecutive month of decrease.
- Total retail sales increased by 3.7% year-on-year in May, a significant improvement from a 3.0% fall in April.
- Hot weather and an early May bank holiday boosted sales for food and drink, health and beauty, and clothing.
- Consumer confidence returned to early 2026 levels, but two-thirds of respondents reported making financial adjustments due to uncertainty.
Consumers in Britain increased their spending in May, reversing a trend of reduced expenditure seen in April. Data from Barclays indicated a 0.8% annual growth in consumer spending for May, a notable improvement from the 0.1% decline recorded in the previous month. This uptick was partly attributed to favorable weather conditions and an early May bank holiday, which boosted sales in sectors like food and drink, health and beauty, and clothing.
Despite the overall increase, spending on travel continued its downward trajectory for the third consecutive month, falling by 5.8% year-on-year, with airline spending down 12.9%. The British Retail Consortium (BRC) reported a more substantial 3.7% annual increase in total retail sales for May, the strongest performance since April 2025, compared to a 3.0% decrease in April. The BRC highlighted strong sales of summer goods, clothing, footwear, and food, driven by the heatwave and holiday spending.
Consumer confidence showed signs of recovery, returning to early 2026 levels. However, a significant portion of consumers, two in three respondents, indicated they were making financial adjustments in response to ongoing economic uncertainty, suggesting underlying caution despite the May spending increase.