Particle.news

Download on the App Store

UK Consumer Spending Growth Slows to 1% in May on Rising Financial Pressures

Nearly half of consumers plan to cut discretionary spending after household confidence hit its lowest level this year

Overview

  • Retail sales growth slowed to 1% in May year-on-year, down from a 7% jump in April, marking the weakest pace of 2025 according to the BRC-KPMG Retail Sales Monitor.
  • Food sales rose 3.6% driven by football tournaments and two bank holidays, while non-food sales declined by 1.1%.
  • Spending on health and beauty products climbed 12%, airline tickets increased by 9.7%, and garden centre purchases gained 7.2%.
  • Retailers are absorbing an extra £5 billion from higher National Insurance contributions and wage costs plus £2 billion in forthcoming packaging taxes, and they remain wary of the Employment Rights Bill.
  • Consumer card spending growth slipped to 1% in May from April’s 4.5% as household confidence fell three percentage points to 67%, prompting nearly half of consumers to plan cuts in discretionary purchases.