Confident consumers throw caution to wind

CONFIDENT North West consumers made the most of their rising spending power in April as the latest monthly data revealed spending climbed more than 5% last month.

The region was the most active of any in the UK, Barclaycard said. With spending up 5.3%, the North West comfortably surpassed the national average of 4.5%. Discretionary spend, such as eating out and going to the cinema, was a key driver of growth.

Nationally, the figures from Barclaycard recorded the biggest uplift in terms of real growth (adjusted for inflation) since it began regular analysis in October 2011.
 
Discretionary spending also grew at the highest level seen in just above three years as consumer confidence remained high. Up 7.3% on April last year, it was boosted by spending on entertainment and travel, which saw spending rise by 12.7% and 6.8% respectively.
 
The sunniest April on record encouraged more consumers to eat out, enjoy a drink in the pub after work and update their wardrobes for the summer.

Clothing retailers experienced a boost in spending of 5.2%, pubs saw spending up 8%, whilst garden centre spending was 6.6 per cent higher.
 
Cinema spend growth reached its highest level since January 2013, up 41.2% – with transaction numbers up by nearly 40% – buoyed by the release of Furious 7, which grossed £15.6m at the box office in its opening weekend.
 
Brits remained on the lookout for a bargain, however, and were determined to get a discount. Spend at discount retailers reached a record high (up 10.4%), and despite restaurant spending growing, the average spend per meal fell by 6.8%.
 
The impact of falling food prices – supermarket spending was down 0.4%  in the month – and relatively low petrol prices – spending on petrol was down 10% – led to spending on essential items falling by 2.9% in April.
 
Barclaycard managing director Chris Wood said: “Great weather, favourable economic conditions and the Easter holidays have culminated in a bumper month for consumer spending in April.

“Since Easter also fell in April last year, this is not a distorted picture and indicates a growing confidence sustained from the first quarter of this year.
 
“Low inflationary pressure is helping consumers to loosen the purse strings on non-essential spending in particular, with many taking the opportunity to make the most of an unseasonably fine British springtime.”