Barclaycard’s latest monthly report shows that card spend rose 7.7% in July with a 7% increase in ‘essential’ spend on items like food and fuel.
Barclaycard has revealed that consumer card spending grew 7.7% in July compared to the same period in 2021 – and 1.6% up on the June figures – as consumers cut back on overseas travel and eating and drinking out and opted instead for staycations, as disposable income continues to fall and wage growth continues to be outpaced by inflation.
Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, says spending on ‘essential’ items rose 7.0% year-on-year, greater than the 4.0% rise recorded in June, driven by fuel and grocery shopping as prices continue to climb. Spending on utilities per customer grew a whopping 43.9% YoY while nine-in-10 shoppers report seeing increases in the prices of everyday items including butter and milk.
The average value of a supermarket transaction dropped from £23.67 in January 2021 to £19.33 in July 2022, indicating a shopper preference for smaller basket sizes to save money. In addition, nearly two-fifths (37%) are purchasing certain items on a need-to-buy basis to save money and avoid waste, resulting in an emerging trend for smaller basket sizes, and more frequent trips to the shops to restock when items run out.
