Barclays Report: U.K. Consumer Spending Growth Slows but Remains Above Trend in August

Consumer spending momentum eases

U.K. consumer spending rose 2.1% year-on-year in the four weeks ending August 29, according to Barclays’ latest U.K. Spend Trends report released on Wednesday.

The figure represents a slowdown from the 2.5% growth recorded in the four weeks ending July 4, but still outpaces the longer-term average growth trend of around 1.5%.

Older consumers and online purchases drive growth
August’s increase was supported primarily by older consumers, while younger age groups contributed less. Online purchases outperformed offline spending, highlighting the continued shift toward digital channels.

Discretionary goods and services—covering areas such as leisure, travel, and non-essential retail—outpaced non-discretionary categories, underscoring consumers’ willingness to spend on lifestyle and elective purchases despite lingering economic uncertainty.

Sector highlights

• Digital Content, Home & Electronics, and Other Retail led sector performance.
• Clothing Retail extended its positive run with a 2.2% rise.
• Fuel, Motoring (excluding fuel), and Hardware & DIY recorded declines, reflecting ongoing consumer caution in essential and home-improvement categories.