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UK retail spending progress slowed to its weakest tempo this yr in Might, in accordance with new information, casting doubt on the energy of client resilience.
The worth of retail gross sales elevated at an annual fee of 1 per cent in Might, the bottom fee in 2025 and nicely under the common of two.5 per cent between January and Might, in accordance with figures printed by the British Retail Consortium on Tuesday.
The determine additionally lagged behind the April inflation fee of 3.4 per cent, suggesting a fall in real-terms spending.
Helen Dickinson, chief govt of the British Retail Consortium, mentioned shoppers had “put the brakes on spending”, particularly on non-food gadgets resembling vogue and full worth, big-ticket purchases, held again “by decrease client confidence”.
Nevertheless, meals gross sales had remained regular, helped by a number of main soccer tournaments, whereas gaming had additionally carried out nicely due to standard new releases, she added.
Official information confirmed that within the three months to April, the inflation-adjusted gross sales rose 1.8 per cent in contrast with the earlier three months, the quickest fee since July 2021. Nevertheless, the BRC information recommend that the figures for Might, printed on June 20, might be weaker.
Within the first three months of the yr, the UK financial system grew more than expected at 0.7 per cent, however economists, together with on the Financial institution of England, anticipate the tempo to gradual within the second quarter.
Linda Ellett, UK head of client, retail and leisure at KPMG, which helps compile the BRC information, mentioned sunny climate had meant some buyers made seasonal purchases early, contributing to a slowdown in gross sales progress in Might. She added that spending urge for food was additionally damped after households have been hit by an increase in important payments in April.
The BRC figures chime with these from Barclays, which on Tuesday reported client credit score and debit card spending rising by an annual fee of just one per cent, additionally under the most recent tempo of inflation.
Card spending on clothes rose simply 0.9 per cent in Might whereas transactions within the sector have been up 3.8 per cent, which Barclays mentioned indicated buyers have been switching to cheaper gadgets or manufacturers. Spending on electronics and residential enchancment contracted.
Barclays’ head of retail, Karen Johnson, mentioned buyers have been “turning into extra value-conscious”, balancing important spending with small luxuries resembling cinema journeys, backyard initiatives or quick breaks. And whereas sunshine within the first half of the month helped gross sales, “longer-term uncertainty continues to form how and the place folks select to spend”, she added.
