Consumer card spending in the UK saw a modest increase of 1.0% year-on-year in May, as reported by the Barclays Consumer Spend report. This growth was lower than April's 4.5% rise and fell below the latest CPIH inflation rate of 3.5%. The month’s two bank holidays provided a boost to discretionary spending, but this was offset by poor weather conditions in the latter half of May and reduced consumer confidence in personal finances.
The report noted a three percentage point drop in household financial confidence to 67%, with the ability to spend on non-essentials falling four percentage points to 56%. Discretionary spending rose only 2.0%, compared to April's 5.1% increase, with nearly half of UK adults planning to cut back on expenses.
Barclays’ research highlighted growing concerns over 'shrinkflation', rising digital content costs ('streamflation'), and increasing interest rates. For those reducing expenses, clothing emerged as a key category for cutbacks, with card spending on apparel up just 0.9%.
Despite financial caution, two in five UK adults continue to indulge themselves regularly through budget-friendly options like sales or smaller treats. Meanwhile, more than seven out of ten are worried about global import tariffs, though four out of ten believe the new EU trade deal will benefit the UK economy.
Grocery spending grew by just 0.9%, down from April’s 6.6% increase, attributed to price competition among major providers and consumers seeking better value for money.
May’s sunny spring contributed positively to sectors like pharmacy, health and beauty (up 12%) and travel (up 3.7%). Increased pharmacy spending correlated with a surge in NHS hay fever advice page visits early in May.
Airline spending increased by 9.7%, as travelers finalized summer plans, while cinema attendance rose due to blockbuster releases such as "Mission: Impossible – The Final Reckoning" and "Lilo & Stitch," boosting cinema spending by 19.2%.
Karen Johnson, Head of Retail at Barclays, commented: “Consumers are clearly becoming more value-conscious as financial pressures persist, but they’re still finding joy in the everyday.”
In June 2025, Barclays released its '10 Years of Spend' report analyzing trends since 2015 and providing future outlooks based on proprietary transaction data.