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UK retail spending growth slowed to its weakest pace this year in May, according to new data, casting doubt on the strength of consumer resilience.
The value of retail sales increased at an annual rate of 1 per cent in May, the lowest rate in 2025 and well below the average of 2.5 per cent between January and May, according to figures published by the British Retail Consortium on Tuesday.
The figure also lagged behind the April inflation rate of 3.4 per cent, suggesting a fall in real-terms spending.
Helen Dickinson, chief executive of the British Retail Consortium, said consumers had “put the brakes on spending”, especially on non-food items such as fashion and full price, big-ticket purchases, held back “by lower consumer confidence”.
However, food sales had remained steady, helped by several major football tournaments, while gaming had also performed well because of popular new releases, she added.
Official data showed that in the three months to April, the inflation-adjusted sales rose 1.8 per cent compared with the previous three months, the fastest rate since July 2021. However, the BRC data suggest that the figures for May, published on June 20, could be weaker.
In the first three months of the year, the UK economy grew more than expected at 0.7 per cent, but economists, including at the Bank of England, expect the pace to slow in the second quarter.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, which helps compile the BRC data, said sunny weather had meant some shoppers made seasonal purchases early, contributing to a slowdown in sales growth in May. She added that spending appetite was also damped after households were hit by a rise in essential bills in April.
The BRC figures chime with those from Barclays, which on Tuesday reported consumer credit and debit card spending growing by an annual rate of only 1 per cent, also below the latest pace of inflation.
Card spending on clothing rose just 0.9 per cent in May while transactions in the sector were up 3.8 per cent, which Barclays said indicated shoppers were switching to cheaper items or brands. Spending on electronics and home improvement contracted.
Barclays’ head of retail, Karen Johnson, said shoppers were “becoming more value-conscious”, balancing essential spending with small luxuries such as cinema trips, garden projects or short breaks. And while sunshine in the first half of the month helped sales, “longer-term uncertainty continues to shape how and where people choose to spend”, she added.
