UK Consumer Spending Rebounded in May Amid Travel Caution and Retail Surge
May 2026 UK Consumer Spending and Retail Trends
LONDON, June 9 (Reuters) - Consumers in Britain increased their spending in May after reducing it in April, but their expenditure on travel dropped for a third month in a sign of caution over the economic impact of the Iran war, surveys showed on Tuesday.
Retail Growth Driven by Weather and Holidays
Barclays and the British Retail Consortium said hot weather helped to drive sales of clothing and other items.
Barclays Data Highlights
Barclays said:
- Consumer spending grew by 0.8% in annual terms in May, weaker than inflation which is running at around 3% but up from a 0.1% decline in April
- Travel spending fell by 5.8% for a third month of decline, with airline spending down by 12.9% from a year earlier
- Hot weather and the early May bank holiday contributed to growth at food and drink shops and in health and beauty while hotels and accommodation benefited from domestic tourism
- Consumer confidence returned to levels of early 2026 but two in three respondents were reacting to uncertainty by making financial adjustments
- Barclays' spending data covered April 27 to May 22.
Travel Spending Trends
Travel spending continued to decline, reflecting ongoing consumer caution amid geopolitical tensions and economic uncertainty.
BRC Retail Sales Insights
The BRC said:
- Total retail sales increased by 3.7% in annual terms in May, the biggest such increase since April 2025 and compared with a fall of 3.0% in April this year
- Food and non-food sales rose by 3.9% and 3.5% respectively
- "May's heatwave drove a surge in outdoor and summer goods. Clothing and footwear returned to growth as shoppers snapped up summer essentials like sandals and sunglasses. There was also roaring trade in fans, lighter bedding, and outdoor toys, and food sales were lifted by bank holiday barbecues," BRC chief executive Helen Dickinson said
- The BRC survey covered the period of May 3 to May 30
Impact of Weather on Retail
Hot weather and the early May bank holiday played a significant role in boosting sales across various retail categories.
(Writing by William Schomberg; editing by David Milliken)
