New April Index, shows Britain spending more on going out and making home improvements
Headline findings:
– Consumer spending increases +2.0% year-on-year
– Spending increases at hotels, restaurants and bars and on household goods, boosted by Easter break
– Clothing & footwear retailers experience reduced spending for fifth month in a row
Commenting on April data, Kevin Jenkins, managing director UK & Ireland at Visa Europe said: “April was all about going out and sprucing up the home as consumers enjoyed the Easter weekend and a sunny second half of the month. Spend on household goods including furniture, home accessories and DIY rose as did trips to hotels, restaurants and bars.
“Overall spending volumes were 2% higher compared to a year ago, marking the strongest monthly growth rate since Black Friday boosted November’s figures. The improvements in household spending power could drive growth in consumer spending for several months to come, even as margins and price wars continue to depress total spend on the high street.”
What UK businesses are saying
Visa is tracking the sentiment of several small businesses across the UK on a monthly basis, asking about their views on the economy, business conditions and forecasts for the month ahead.
Tony Bailey, Top Notch Hair & Beauty, Manchester: “While we had more customers coming in through the door in April, they spent less, so total revenue was down slightly from the same month last year. We’re not exactly sure why, but it might be because people held back on spending due to concern about the election and how it may impact their finances. Overall, our business has enjoyed steady growth over the past year as the economy improves.”
Linda Anthony, Cotswold Celebration Company, South Gloucestershire: “April revenue was up by 2.5% over the same month last year. It’s clear people have more money in their pockets and are more willing to splash out on parties and celebrations. Last year, on average our customers spent around £100 for a party, this has increased to £250 this year. We’ve also benefited from the rise of the ‘sofa surfing’ trend with the majority of our sales now coming from online orders.”
Imogen Hawthorne, Paisley Immy Cakes, Birmingham: “We enjoyed marked increase in revenue last month, mainly because we started supplying to a new vegan food shop. Apart from that, the return of the ‘feel-good factor’ has also helped boost our sales. Last year, most of our customers were more interested in basic cakes. Now they are not shy to pay extra for something really nice or special.”