‘Beast from the East’ keeps shoppers at home as consumer spending growth slows to 2.0 per cent in March

Consumer spending growth slowed in March as extreme weather brought about by ‘the Beast from the East’ kept shoppers at home.

Data from Barclaycard found that consumer spending grew by 2.0 per cent in March, its lowest level since April 2016, dropping from 3.8 per cent in February.

In-store spending was particular affected, contracting by 1.9 per cent, as consumers opted to do their shopping online over braving the cold on the high street.

Read more: Multiple snow storms cripple high street retail sales in March

Despite March’s slowdown, overall spending in Q1 2018 was fairly stable, decreasing slightly to 3.1 per cent from 3.2 per cent in Q4 2017.

Restaurants and pubs faired better, as spending stood at 7.2 per cent and 7.7 per cent respectively, although this still represents a dip in growth from February, when growth was up at 9.7 per cent and 10 per cent.

In consumer sentiment, though 64 per cent of Brits were confident in their household finances, a third said they were less confident in their ability to save money.

Paul Lockstone, managing director at Barclaycard, commented:

The ‘Beast from the East’ took its toll on the high street in March, keeping shoppers at home and leading to a slowdown in consumer spending. Despite the dip in growth last month, however, expenditure was broadly stable in the first quarter.

It seems consumers have become accustomed to adjusting their budget and as a result, are more confident in their own finances. While there are bright spots, however, it’s important to note that a sense of caution still remains, with many of us hesitant to change our spending patterns no matter what the next few months may bring.

Barclay Card’s figures also follow similar reports last week which found retailers had struggled to lure customers back to shops during March’s unusually cold snap.