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UK client spending grew strongly in April, boosted by hotter climate and the late timing of Easter, regardless of elevated uncertainty over US commerce tariffs and rising prices, business knowledge confirmed.
The worth of retail gross sales elevated at an annual price of seven per cent in April, properly above the 12-month common of 1.4 per cent, based on figures revealed by the British Retail Consortium on Tuesday.
Helen Dickinson, chief government of the BRC, mentioned: “The sunniest April on document introduced with it a lift to retail gross sales.
“Whereas the stronger efficiency was partially a results of Easter falling in April this yr, the sunshine prompted robust client spending throughout the board,” she added.
The shift in Easter timing, from March final yr to April this yr, impacted annual gross sales progress. Nonetheless, gross sales for March and April mixed had been up 4.3 per cent in contrast with the identical interval final yr, and properly above the 0.7 per cent progress registered on common in 2024.
Spending progress within the two months was additionally above the speed of inflation, which in March stood at 2.6 per cent.
Retail gross sales progress has been weaker than inflation for a lot of the previous three years, because the UK’s price of dwelling disaster prompted households to chop again on purchases. However gross sales volumes grew by 1.6 per cent within the three months to March this yr, the quickest tempo since mid-2021, official knowledge confirmed final month.
The BRC knowledge recommend that hotter spring climate supported progress to proceed final month, regardless of considerations over the fallout from US President Donald Trump’s commerce conflict alongside greater utility payments and sure taxes, akin to stamp responsibility and highway tax.
The BRC, which represents greater than 200 retailers, revealed its knowledge forward of official April figures on Might 23.
Dickinson mentioned meals gross sales had carried out properly, linked to the Easter celebrations, whereas DIY, homeware and gardening items purchases had been boosted by individuals profiting from the climate.
Clothes gross sales, the place progress has been sluggish in current months, additionally improved as customers refreshed their wardrobes for the brand new season, based on BRC.
Low client confidence stored spending down in 2024 regardless of wage progress outpacing inflation for almost two years.
In April, the rise within the nationwide dwelling wage and a discount in quoted mortgage charges helped to strengthen family funds, partly offsetting an increase in prices.
The BRC figures had been consistent with separate knowledge by Barclays, which reported client spending rising at an annual price of 4.5 per cent in April — the best uplift since June 2023 and the primary studying above inflation in additional than two years.
The general hospitality and leisure sector grew 6.7 per cent, the very best improve since 2023, based on Barclays, which tracks almost 40 per cent of the nation’s credit score and debit card transactions. Spending in bars, pubs and golf equipment reached a 16-month excessive, up 6.6 per cent.
Julien Lafargue, chief market strategist at Barclays Non-public Financial institution, mentioned that whereas the world “continues to grapple with unprecedented ranges of commerce uncertainty”, customers remained “resilient”.
“The current determination by the Financial institution of England to additional decrease rates of interest ought to add to this momentum,” he added.
