London Daily

Focus on the big picture.
Monday, Aug 25, 2025

Britons spend more, go out less in early April

Britons spend more, go out less in early April

British consumers spent more in early April, partly due to soaring fuel prices, but fewer people left their homes to go to work, shop or socialise, raising the prospect of an economic slowdown caused by a cost-of-living squeeze.
British consumers spent more in early April, partly due to soaring fuel prices, but fewer people left their homes to go to work, shop or socialise, raising the prospect of an economic slowdown caused by a cost-of-living squeeze.

Weekly credit and debit card data showed spending in the week to April 7 was 2 percentage points higher than the week before, though this was not adjusted for seasonal factors or inflation.

The Office for National Statistics said overall spending was 6% higher than in February 2020, before the COVID-19 pandemic, while average prices have risen by more than 8% since then.

Consumer price inflation has picked up sharply over the past year and last month, budget forecasters predicted it would reach nearly 9% by the end of the year, ushering in the biggest cost-of-living squeeze since records began in the late 1950s.

The Bank of England expects growth to slow sharply this year as households' disposable income drops in real terms.

The most recent rise in spending was led by a 6-percentage-point week-on-week increase in 'work-related' spending, which includes the cost of fuel for commuting, the ONS said, while spending on socialising was up by 4 percentage points too.

The higher spending figures, which come from interbank CHAPS payments data collected by the BoE, contrast with a fall in the number of Britons visiting places of work, shops and restaurants over the same period.

Google Mobility figures published by the ONS showed a 4% week-on-week drop in visits to workplaces and a 1% decline in visits to 'retail stores and recreation areas', while OpenTable restaurant booking figures dropped by 2 percentage points.

Looking ahead, British banks are concerned that defaults on a wide range of loans will rise, according to a quarterly survey by the BoE, also published on Thursday.

Rates of default for mortgages, unsecured consumer lending and business loans are all expected to be higher in the three months to the end of May than in the three months before.

That said, recent rates of default have been low, and concerns about big rises in default rates in previous surveys have not come to pass.

The survey also showed lenders intended to reduce the availability of mortgages by the most since the early days of the coronavirus pandemic in 2020.

"The anticipated pull back in credit availability reflects rising market interest rates rather than ... criteria over which lenders have more control," said Andrew Wishart, senior property economist at Capital Economics.

Financial markets expect the BoE to raise rates to at least 2% by the end of the year, up from 0.75% currently.
Newsletter

Related Articles

0:00
0:00
Close
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
×