Consumer spending fell 14.5 % year-on-year in June – the smallest decline since lockdown began – with month-on-month figures showing an uplift as shops re-open.
Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, revealed that spending on essential items grew 6.6% – an improvement of 5.7% compared to May, which saw a 0.9% increase. This was largely driven by shopping in supermarkets, with the category rising by 25.7% overall – its sharpest since the start of the year. Online grocery spend also jumped significantly by 105.9% year-on-year, as demand for home deliveries saw supermarkets increase their available slots for online orders.
While fuel spend saw an overall decline of 33.8%, the drop was less severe than last month (-49.7%) as warmer weather and easing of lockdown measures allowed more people to travel to see friends and family, and take day trips.
Spending on non-essential items fell 22.3% – an improvement on the decline seen in May (-36.9%) as the gradual re-opening of non-essential shops saw general retailers increase by 31.7%.
While overall spending on eating and drinking declined by 56.4% year-on-year, this represents a less steep drop than May (70.3%). Takeaways and fast food rose for the first time since pre-lockdown with a 5.7% yearly growth, as restaurants, pubs and cafes continued to establish takeaway and delivery services and Brits enjoyed al-fresco dining with friends.
There were signs, however, that the high street’s recovery may be a long one as over half (56%) of consumers continue to avoid the shops. Three in 10 (31%) Brits admit to delaying shopping because they are afraid of getting or spreading coronavirus, while 18% say they are put off by crowds. New social distancing rules are providing some reassurance, with nearly a fifth (18%) more likely to return to shops because of these precautions.
