Consumer card spending increased by 4.5% year-on-year in April, new figures published by Barclays have shown.

This was the greatest uplift recorded since June 2023, and above the most recent CPIH inflation rate of 3.4% for the first time in over two years.

Barclays suggested the Easter weekend and the sunny weather boosted both retail and hospitality spending, while essential spend returned to growth after two months of decline, at 3.1%.

Research conducted by Barclays in late April, based on 2,000 respondents, showed that seven in 10 UK consumers (72%) were concerned about the impact tariffs could have on their household finances, although this was an improving picture compared to the start of the month (77%).

The bank’s data also indicated that 27% of consumers reported trying to save more money each month to build up a buffer, in case prices rise in the future.

Overall confidence in household finances remains resilient at 70%, Barclays added, while 74% feel able to live within their means. This positive outlook was reflected in the performance of non-essential spending, which was up 5.1% year-on-year, significantly higher than March’s 2.2% rise, and the highest growth since 2023.

Chief market strategist at Barclays Private Bank and Wealth Management, Julien Lafargue, commented: “While the world continues to grapple with unprecedented levels of trade uncertainty, UK economic sentiment has been surprisingly positive recently, supported by a resilient consumer. The recent decision by the Bank of England to further lower interest rates should add to this momentum.

“Similarly, the trade agreement reached between the US and the UK should provide some much-needed visibility to businesses. That said, growth is likely to remain muted in absolute terms. These positive developments may only partially offset the consequences of a softer labour market, and a challenging economic backdrop in the rest of the world.”

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