2024-05-06 23:04:59
British consumers kept their spending in check last month, according to surveys on Tuesday that showed tepid activity even after taking into account the Easter holiday period.
Barclays said annual growth in payment card spending slowed to 1.6% in April, the weakest since February 2021, down from 1.9% in March and an effective decline after adjusting for inflation.
Separately, the British Retail Consortium reported a sharp fall in retail sales in April compared with the previous year. When the Easter date was brought forward this year, the expenditure before the festival took place in March and not in April.
However, the trade body said sales were disappointing even after adjustment.
Retail sales values - not adjusted for inflation – fell 4.0% year-on-year in April, after a 3.5% rise in March, the BRC said. If we combine the months of March and April, sales increased by 0.2% compared to the previous year.
“Battlesome weather and disappointing sales have made for a depressing start to spring for retailers, even considering the change in the Easter date,” said Helen Dickinson, chief executive of the BRC.
Overall, the surveys point to the outlook for tepid economic growth in the UK, although business surveys have recently suggested some improvement.
The data is likely to be noticed by members of the Bank of England’s interest rate committee, which will announce its decision for May on Thursday. Official retail sales data for April is not expected until May 24.
On the positive side, Barclays said consumers had become more confident about their finances.
“While improved consumer confidence offers a glimmer of hope for the retail and hospitality sectors as the summer season approaches, many retailers have adjusted their expectations, anticipating a lack of real recovery before the autumn,” said Karen Johnson, head of retail at Barclays.
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