UK consumer card spending grew low single digits in October amid rising bills and Christmas costs - Indoors Beauty

UK consumer card spending grew low single digits in October amid rising bills and Christmas costs

UK consumer card spending grew low single digits in October amid rising bills and Christmas costs

Consumer card spending grew simply 2.6% year-on-year in October 2023 – noticeably lower than the most recent CPIH inflation fee of 6.3% and the smallest uplift since September 2022 (+1.8%).

It comes as Brits face rising vitality bills and outgoing costs forward of the festive interval, hindering discretionary spending, in line with the most recent knowledge and consumer confidence survey from Barclays, which sees practically half of the nation’s credit score and debit card transactions.

Over a 3rd (36%) count on this Christmas shall be costlier than in 2022. As a outcome, practically one in 5 (18%) have already began shopping for presents to unfold the associated fee, whereas 14% have spoken to family members to “make a mutual settlement to chop again on gift-giving”.

On a extra optimistic be aware, pubs, bars and golf equipment had one other sturdy month in October, up 5.9% and boosted by the Rugby World Cup for the second month operating, whereas an increase in vacation bookings of 10.5% boosted journey.

Esme Harwood, Director at Barclays, mentioned: “Brits reduce on non-essential classes similar to clothes and eating places in October, as ideas turned to saving for Christmas and budgeting for winter gas bills.”

Jack Meaning, Chief UK Economist at Barclays, added: “It appears to be like as if the oomph continues to exit of squeezed UK customers. The newest transaction knowledge reveals they’re pulling again from discretionary spending and more and more nervous about their future potential to spend, including to the image painted by different knowledge.

“Third-party consumer confidence knowledge confirmed a major drop in October, coming off the again of retail gross sales contracting considerably in September. While a few of these results may be being amplified by unseasonal climate, it is onerous to dismiss the rising proof.”

The consumer confidence survey was carried out between 20-24 October 2023 by Opinium Research on behalf of Barclays. There have been 2,000 respondents, offering a consultant pattern of UK customers by age, gender, area, and earnings group.

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