Consumer spending in the United Kingdom rose 2.1% year-on-year during the four weeks ending August 29, according to data from Barclays U.K. Spend Trends released Wednesday.
Although this growth is slightly slower than the 2.5% increase seen in the four weeks ending July 4, it remains above the longer-term trend of roughly 1.5% growth.
Barclays noted that the rise in spending was primarily driven by older consumers, with online purchases outperforming in-store sales. Growth was stronger in discretionary goods and services than in non-discretionary items.
Among the tracked sectors, Digital Content, Home & Electronics, and Other Retail recorded the highest growth. Clothing retail maintained positive momentum with a 2.2% increase, while Fuel, Motoring (excluding Fuel), and Hardware & DIY categories showed declines.
Looking ahead, Barclays projects consumer spending to grow 1.7% year-on-year in the four weeks ending September 26, 2025, with discretionary categories expected to continue outperforming essentials.
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