April marked the first annual decline in UK consumer spending since late 2024 as geopolitical tensions weighed on confidence.
UK consumer spending contracted 0.1% year-on-year in April, the first decline since November 2024, as households reduced discretionary purchases amid escalating Iran war concerns. Barclays credit and debit card data showed a reversal from March’s 0.9% gain, while the British Retail Consortium reported a 3.0% drop in total retail sales, down from a 3.6% rise the prior month.
Big-ticket and travel-related spending bore the brunt of the pullback, with Barclays recording a 5.7% annual decline in travel card spending. Adjusted for Easter timing, retail sales still rose 1.5% over March and April combined, though the broader trend signaled caution.
Economists linked the shift to households building savings buffers, citing falling confidence and fears of rising living costs due to the Middle East conflict.