🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Wet weather keeps cloud over UK spending in May

Published 06/03/2024, 07:06 PM
Updated 06/03/2024, 07:10 PM
© Reuters. A person holds a shopping bag on Oxford Street in London, Britain April 10, 2023. REUTERS/Anna Gordon/File Photo

By David Milliken

LONDON (Reuters) - Wet weather and ongoing cost-of-living pressures kept a cloud over British consumers in May, with one survey showing the weakest spending growth in more than three years.

Barclays said spending on its customers' debit and credit cards was only 1.0% higher than a year earlier, slowing from 1.6% annual growth the month before and the weakest increase since February 2021.

Also on Tuesday, The British Retail Consortium trade body said sales at its members' stores grew 0.7% on an annual basis, up from April's 4.0% fall but much weaker than the 3.9% growth a year earlier.

Neither the Barclays nor the BRC data is adjusted for inflation - which was 2.3% in April - so the volume of goods and services purchased in May likely fell.

During May parts of England received a month's rain in a single day, Met Office data showed, keeping shoppers at home, and overall rainfall was 16% higher than average across the United Kingdom as a whole.

"Despite a strong bank holiday weekend for retailers, minimal improvement to weather across most of May meant only a modest rebound in retail sales last month," BRC Chief Executive Helen Dickinson said.

Britain's economy was in a shallow recession in the second half of last year but recorded strong quarterly growth of 0.6% in the first three months of this year.

Prime Minister Rishi Sunak last month called an election for July 4 - contrary to widespread expectations that he would wait until October or November - which some analysts said reflected a view that voters would feel no better off later this year.

© Reuters. A person holds a shopping bag on Oxford Street in London, Britain April 10, 2023. REUTERS/Anna Gordon/File Photo

Barclays said 87% of consumers it surveyed were concerned about higher household bills, especially council tax, broadband and mobile bills and water charges. Almost half of consumers said they were reducing discretionary spending, for example by spending less on summer clothing.

Barclays' data was based on spending between April 20 and May 17, while the BRC figures covered April 28 to May 25.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.