Warm weather and Easter weekend boosted UK spending in April, says Barclays

British households accrued their spending successful April arsenic unusually lukewarm upwind and the agelong Easter play helped consumers motion disconnected anxiousness astir the planetary economy, caller information has suggested.

Consumer paper spending grew by 4.5% successful April compared with the aforesaid play past year, the biggest emergence since June 2023, the precocious thoroughfare slope Barclays found. Non-essential spending, specified arsenic connected amusement oregon takeaway food, roseate by 5.1% past month, its highest complaint successful astir 2 years.

The warmest April connected record, combined with a agelong Easter weekend, besides meant much shoppers were retired connected the precocious street. Spending successful carnal shops accrued by 6.9% aft it dropped by 1.9% successful March connected a year-on-year basis.

Julien Lafargue, a strategist astatine Barclays, said economical sentiment was “surprisingly positive” adjacent amid uncertainty astir the interaction of US tariffs connected the economy.

“The caller determination by the Bank of England to further little involvement rates should adhd to this momentum. Similarly, the commercialized statement reached betwixt the US and the UK should supply immoderate overmuch needed visibility to businesses.” helium said.

Last week the Bank agreed to cut involvement rates by a 4th constituent to 4.25% and Keir Starmer announced helium had reached a commercialized statement with Donald Trump, the US president.

The Barclays information chimed with abstracted probe by the British Retail Consortium (BRC), an manufacture body. It recovered retail income roseate by 4.3% crossed the March and April period. Food income successful April grew 8.2% against past year, portion non-food income grew by 6.1%.

Helen Dickinson, the BRC’s main executive, said Easter falling successful April this twelvemonth had contributed to the income boost and the sunny upwind had led to a boost successful user spending.

She said: “Food income performed good arsenic radical brought unneurotic their household and friends for Easter celebrations, portion income of DIY, homeware and gardening goods shone agleam arsenic radical made the astir of the weather.”

Online furnishings income roseate by 7% successful April, with household appliances up 8%. Linda Ellett, of the consultancy KPMG, said that this was apt a effect of a emergence successful caller homeowners owed to stamp work changes past month.

From 1 April, first-time buyers successful England and Northern Ireland present wage taxation connected homes worth much than £300,000, down from £425,000, and the threshold for a reduced complaint for first-time buyers volition driblet from £625,000 to £500,000.

The zero-tax stamp work threshold that applies to each lodging successful England and Northern Ireland besides dropped from £250,000 to £125,000.

A unreserved of first-time buyers trying to get up of the stamp work changes meant March was 1 of the busiest months ever for large owe lenders, with Barclays reporting the fig of owe completions accrued by 50% successful the UK.