Importance Score: 70 / 100 🔴
Increased Consumer Spending on British-Made Products
In a boost for the local economy, consumers increased their spending on products made in Britain last month, demonstrating a growing preference for supporting small businesses amidst concerns about potential impacts from international trade policies. A recent consumer spending report indicates a notable shift towards purchasing home-grown products.
Preference for Local Businesses and Products
Findings from Barclays’ latest consumer spending report highlight a strong desire among shoppers to bolster the local economy. Key statistics include:
- Seven in ten shoppers are actively seeking to support local businesses.
- One in eight shoppers are prepared to pay more for British-made goods.
Spending Habits Reflecting Support for British Products
Consumer behavior aligns with their stated preferences. Spending at specialized retailers like butchers, delis, and fishmongers saw an 11.4% rise in April, suggesting consumers are consciously choosing British products.
The report also revealed that almost half of shoppers are planning to increase their purchases of, or switch to, British fruit and vegetables. Furthermore:
- 39% intend to buy more British dairy products.
- 39% intend to buy more British meat.
- 29% are looking to buy more British seafood.
Impact of Weather and Holidays on Retail Spending
The combination of favorable weather conditions and the Easter holiday period drove increased foot traffic to British high streets. This resulted in a 6.9% increase in in-store retail spending in April, a significant rebound from the 1.9% year-on-year decrease recorded in March.
Hospitality and Leisure Sector Growth
The hospitality and leisure sector experienced robust growth, increasing by 6.7% – the highest since 2023. Spending in bars, pubs, and clubs also reached a 16-month peak, climbing by 6.6%.
Positive Trends in Garden Centres and Home Improvement
Garden centres had an exceptional month, with spending surging by 25% compared to the previous year. Additionally, spending at home improvement and DIY stores rose by 4%, potentially influenced by recent adjustments to stamp duty thresholds.
Impact of Stamp Duty Changes
Barclays’ data indicates a 50% increase in mortgage completions in March, as buyers sought to finalize transactions before the introduction of higher stamp duty rates.
Expert Commentary on Consumer Trends
Karen Johnson, head of retail at Barclays, commented on these trends: “April’s sunny weather inspired consumers to embrace the best of Britain, with all retail, hospitality, and leisure subcategories in growth for the first time in over five years.”
She added, “While the long-term impact of any tariffs on household finances remains to be seen, given Thursday’s announcement of a UK/US trade deal, shoppers are demonstrating a commitment to supporting British business, while still carefully managing their money.”
Overall Consumer Spending and Confidence
Overall, consumer card spending outpaced inflation, growing by 4.5% year-on-year in April – the fastest rate observed in almost two years.
Despite potential concerns about the impact of tariffs on household budgets, overall consumer confidence remains strong at 70%.
This confidence was reflected by a 5.1% year-on-year increase in non-essential spending, nearly doubling the 2.2% increase seen in March.