Consumer spending grew 3.5% in October as cost-of-living continues to squeeze finances

Consumer card spending grew 3.5% year-on-year in October, higher than in September but well below the 8.8% rise in consumer inflation as the cost-of-living crisis continues to put pressure on Brits’ personal finances.

According to data from high-street bank Barclaycard, a report which combines millions of UK customer credit and debit card transactions, spending on essential items – such as fuel and groceries – increased 5.7 per cent year-on-year, steeper than September’s growth (3.3%) reflecting the impact of rising inflation.

The upcoming festive season is also set to be impacted, as almost half (48%) of Brits are planning to cut down on Christmas purchases, including festive activities and gifts – to save money this year.


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As the cost of food continued to rise, supermarket shopping grew 4.6% causing two thirds of Brits to look for ways to get more value from their weekly shop, with almost half of these shoppers (48%) buying budget or own-brand goods over more expensive branded goods.

In response, 44% of people surveyed are opting for cheaper ‘wonky’ vegetables, and one in four (26%) are only buying items that are discounted or on offer.

Against a backdrop of political and economic uncertainty, confidence in the UK economy fell sharply to 15%– the lowest level recorded since 2015, when Barclaycard first began tracking this data.

Additionally, 92% are worried about the negative impact of rising inflation on their personal finances, with 19% feeling that the cost-of-living squeeze is having a negative impact on their mental health.

“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,” director at Barclaycard, Esme Harwood said.

She added: “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.”

FinanceNewsPeople

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