UK consumers commit to buying British, as two thirds report concerns about prices of imports following “Liberation Day”

• Confidence in discretionary spending remained resilient, with 58 per cent confident in their ability to spend on non-essential items
• Essential spending, however, contracted -2.9 per cent, with consumers making cutbacks in anticipation of rising household bills
• Two in three UK adults are concerned that imported products will become more expensive, while 71 per cent plan to buy more items that are “Made in Britain”
• Digital content & subscriptions were boosted by the success of hit shows like The White Lotus and Adolescence, but consumers are questioning the value of streaming services
• The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending

Consumer card spending grew just 0.5 per cent year-on-year in March – lower than February’s 1.0 per cent growth and less than the latest CPIH inflation rate of 3.7 per cent. The sunny weather boosted non-essential categories such as garden centres and food and drink specialist stores. However, in anticipation of rising bills and inflation on imported products, consumers are feeling less confident in their household finances and continue to find ways to cut back on essential costs.

UK consumers’ confidence in both their household finances and ability to live within their means fell back in line with January’s figures following a spike in February, to 70 per cent (down from 75 per cent) and 74 per cent (down from 77 per cent) respectively. Nearly two fifths (37 per cent) of UK adults said they were trying to reduce their outgoings in March in anticipation of rising household bills, contributing to a -2.9 per cent decline in essential spending (in comparison to -1.0 per cent in February).

Prioritisation of discretionary purchases remains strong, as 61 per cent report budgeting for these expenses, with the non-essential spending category up 2.2 per cent year-on-year.

Move towards “Made in Britain” in response to trade tariffs

In light of recent events, two thirds (67 per cent) of consumers are concerned that the products they buy from outside the UK will become more expensive. Meanwhile, three quarters (71 per cent) say they want to support UK businesses by buying more products that are “Made in Britain”. Two in five (40 per cent) say they are looking for UK-made alternatives to products they currently buy that are produced abroad.

Research conducted between 8^th-11^th April found that confidence in the UK economy dipped slightly month-on-month in March to 24 per cent (down from 25 per cent). In comparison, a smaller proportion reported feeling confident in the strength of the global and US economy, both at 20 per cent.

The return of the ‘big shop’

The volume of supermarket transactions continued to fall in March, down -2.6 per cent following a -3.7 per cent decline in February, suggesting a move away from regular ‘top up’ shops. Half of consumers (50 per cent) say they now prefer to do a ‘big shop’ instead of multiple smaller shops throughout the week, citing the benefits of convenience (52 per cent) and time saving (50 per cent), while two in five (39 per cent) say it makes it easier to budget and keep costs under control.

Food and drink specialist stores potentially benefitted from a dip in supermarket spending, enjoying their highest growth since October 2023, up 4.3 per cent, perhaps also due to the increasing popularity of artisan and locally made produce.

Garden centres seed growth for household spending

Despite retail spend falling -0.2 per cent in March (down from 0.6 per cent growth in February), several subcategories outperformed in the month. Once again, pharmacy, health & beauty emerged as an outlier, up 11.0 per cent – the category’s greatest increase since April 2022.

Garden centres rose 13.4 per cent – the biggest spike seen since Barclays started tracking the category in January 2024 – and spending on home improvements & DIY moved into growth (0.9 per cent) for the first time since June 2023. This comes as a quarter (23 per cent) of UK adults say they are intending to garden over the Easter Bank Holiday weekend, with one in eight (13 per cent) planning DIY, suggesting both categories will continue to perform strongly in April.

Experiences top retail

In contrast to retail’s decline (down -0.2 per cent), spending on hospitality & leisure increased 2.8 per cent in March, suggesting consumers prioritised experiences and making memories over material goods.

Travel spend was up 5.7 per cent year-on-year (up from 5.1 per cent in February), and both travel agents (7.1 per cent) and airlines (7.4 per cent) saw strong growth. Three fifths (61 per cent) of consumers say they have spent on non-essential items even when were financially stretched, with holidays emerging as the top priority purchase. One in five (21 per cent) admit to spending money on trips they had not budgeted for, with other unbudgeted fun including days out (20 per cent) and expensive meals (17 per cent).

Screentime holds steady despite subscription concerns

Spending on digital content and subscriptions (up 5.7 per cent) continued to benefit from popular TV shows such as Adolescence and The White Lotus. However, as prices rise, three in 10 (31 per cent) believe they’re now getting less value for money from their digital content and subscriptions.

As a result, a third (32 per cent) of this group have cancelled a subscription, and 16 per cent have paused or suspended their payments. One in seven (14 per cent) limit themselves to a set number of services to keep costs under control, and a similar proportion (12 per cent) rotate services so they’re only paying when there is content they want to watch.

Karen Johnson, Head of Retail at Barclays, said: “Consumers are feeling the pressure of rising bills, alongside being mindful of the impact recent global events may have on their finances. In a bid to keep costs down, households are adopting more prudent budgeting , which has led to a resurgence of the 'big weekly shop'.

“There are some welcome green shoots however, as the warmer weather and longer evenings encouraged consumers to invest time and money in gardening and DIY- a trend that looks set to continue in the run up to Easter.”

Jack Meaning, Chief UK Economist at Barclays, said: “Following stronger than expected GDP growth in February, today’s data highlights the risks to consumer spending in the months ahead. The impacts of heightened uncertainty and rising bills are already being felt. We expect spending to remain muted through mid-2025, before picking up into 2026 as interest rates easing starts to be felt and uncertainty begins to normalise.”

Overall growth figures

Notes to Editors

Established in 2014, Barclays issues a monthly press release commenting on consumer spending trends.

Across its issuing and acquiring businesses, Barclays sees nearly 40 per cent of the nation’s credit and debit card transactions, which provides us with unique insight into UK consumer spending. Unless stated otherwise, this press release is based on consumer card spending data from Barclays’ issuing business – i.e. Barclays debit card and Barclaycard credit card transactions. It relates to the period 24^th February 2024 – 29^th March 2024 vs 22^nd February 2025 – 28^th March 2025.

The Barclays Consumer Spend research in this press release was carried out between 25^th and 28^th March, and 8^th and 11^th April, by Opinium Research on behalf of Barclays. There were 2,000 respondents in each round of research, providing a representative sample of UK consumers by age, gender, region, and income group. Barclays has been tracking consumer confidence since December 2015. 

For more information, please contact Dee Fallon at deirdre.fallon@barclays.com

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