Consumer card spending grew 3.5% year-on-year in October – higher than in September (1.8%) but well below the 8.8% rise in consumer price inflation – as the cost-of-living crunch continues to put pressure on Brits’ personal finances.
Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, reveals that spending on essential items increased 5.7% year-on-year, steeper than September’s growth (3.3%), reflecting the impact of rising inflation.
In addition, fuel spend rose 17.7% year-on-year, 6.6 percentage points higher than last month’s uplift (11.1%).
Supermarket shopping grew 4.6%, 1.8 percentage points higher than last month (2.8%), as the cost of food continued to rise. In response, 67% of Brits are looking for ways to get more value from their weekly shop, with almost half of these shoppers (48%) paying closer attention to the prices of items they buy regularly, and the same number buying budget or own-brand goods over branded goods. The research shows 44% of shoppers are opting for cheaper ‘wonky’ vegetables, 26% are only buying items that are discounted or on offer, and 13% are growing their own produce at home to save money.
Pharmacy, health & beauty stores were a bright spot, growing 3.8% in October – considerably higher than last month (0.8%). Spending on home improvements and DIY, which has recently seen a downward trend, also saw improvement in October, with its smallest decline (-1.2%) in eight months.
The hospitality and leisure sector also grew 10.2%, but this was the smallest uplift for the category since March 2021, possibly due to the impact of rail strikes and rising living costs.
The data reveals that with the festive season fast approaching, 48% of Brits are planning to cut down on Christmas purchases to save money this year. Of these consumers, 59% will be spending less on gifts for family and friends, 44% will cut back on festive food and drink, and 42% will curb their spending on Christmas parties and socialising. In addition, 19% have started their Christmas shopping earlier this year to spread the cost.
Esme Harwood, Director at Barclaycard, said: “Rising petrol and supermarket costs continue to bite, but Brits are spending less on energy bills as government support kicks in and people find ways to economise at home. Consumers continue to swap big nights out for cosy evenings in as they reduce their discretionary spending, while health & beauty and home improvements enjoy a little boost.
“With the festive season around the corner, we’re likely to see further cutbacks, as Brits reign in their Christmas spending. Consumers are adopting a restrained approach to festivities, reaching for pre-loved gifts and setting spending limits to manage their costs during this traditionally expensive time of year.”
