The picture for hotels, resorts and lodging is less positive, with spending falling 0.7% year-on-year last month, the sector's first monthly decline since May 2023.
Barclays points out that holidays abroad are 'outpacing staycations', with 32% of consumers now seeking sun outside the UK and prioritizing overseas holidays over domestic holidays. He pointed out that he was doing so.
The continued growth in travel far outpaced the meager 1.5% year-on-year increase in overall non-essential spending. Barclays added that consumers were also looking to save in other areas, such as eating out and taking takeaway meals.
This sector performed best of all discretionary categories, excluding digital content and subscriptions, with spending increasing 10.6% compared to the same period last year.
Barclays blames this on the release of Netflix shows such as “Ripley'' and “Baby Reindeer'' and the streaming service's crackdown on password sharing.
“Consumer confidence is recovering”
Restaurants were the worst-performing non-essential sector, with spending down 13.1% in April from a year earlier.
Barclays added that although card spending growth slowed slightly in April compared to February and March, overall consumer confidence was improving. Consumer confidence that they are in control of their finances rose to 71%, the highest level since November 2021.
Jack Mean, chief UK economist at Barclays, said: “Inflation is expected to return to 2% in April, with many expecting a boost from a rise in the National Living Wage. “The recovery in confidence is reassuring.”
“Given the long-term pressures facing consumers, it may take some time for this to translate into higher discretionary spending, but interest rate easing in the second half of this year should stimulate consumer confidence and spending. is.”
