Consumer spending grows

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Consumer spending grew 0.4% in April compared to the same period in 2019 – the first growth recorded this year, new research reveals.

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Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, reveals that spending on essential items rose 10.1% compared to April 2019, the highest growth since August 2020. The figure was boosted by supermarket shopping, which saw an 18.5% increase overall.

Meanwhile, fuel spend saw less of a decline, dropping 8.1% compared to a 20.1% decline in March.

Face-to-face spending at food and drink specialist stores – including butchers, bakeries and greengrocers – increased by 63.7% compared to 2019, showing that shoppers continued to visit local retailers. More than 40% of consumers say they’re more likely to shop locally than before the pandemic and 47% describe the high street as the heart of their community, which they are keen to support.

The specialist retail category grew 9.3% overall, with vets and pet stores seeing the strongest growth (32.4%) compared to two years ago, suggesting animal-loving Brits have not only added new companions to their households but are indulging their pets with treats and new accessories. Home improvement & DIY stores also continued to perform strongly, with a 37.5% growth.

The data showed a moderate improvement in spending at bars and pubs (-67.2%) and restaurants (-74.4%) compared to March, which saw respective declines of 94.8% and 83.1% compared to 2019. Takeaways and fast food continued to prove the most popular dining option, with this category seeing its highest growth on record (59.9%). However, spending in the hospitality sector should improve with the potential further easing of restrictions next week, with 33% of people saying they are willing to spend extra money on entertainment and leisure activities such as drinks or meals out compared to before the pandemic.

The research shows r=the nation is feeling more optimistic about the future, with confidence in the UK economy jumping to 36% in April, from 28% in March. This is the highest since February 2020 – before the onset of the pandemic.

Raheel Ahmed, head of consumer products, said: “Whilst there was a slight improvement in spending at pubs and bars and restaurants, the industry-wide restrictions on outdoor seating, sporadic colder weather, and the rule of six all clearly dampened that recovery this month.

“The economy should hopefully gather momentum as we head into the summer and see the re-opening of indoor hospitality venues. Yet, what is most encouraging is that the easing of restrictions seems to have lifted the nation’s spirits, with many Brits relishing the simple pleasures of dining out and making social plans.”