‘Card spending grew in October as Brits rein in their Christmas spending’

Consumer card spending grew 3.5 per cent year-on-year in October – higher than in September (1.8 per cent) as the cost-of-living crunch continues to put pressure on Brits’ personal finances, states a recent report adding that two thirds of shoppers are looking for ways to get more value from their weekly shop.

According to latest figures by Barclaycard, spending on essential items – such as fuel and groceries – increased 5.7 per cent year-on-year, steeper than September’s growth (3.3 per cent), reflecting the impact of rising inflation. 

As petrol and diesel prices started to creep up again, fuel spend rose 17.7 per cent year-on-year, 6.6 percentage points higher than last month’s uplift (11.1 per cent). Supermarket shopping grew 4.6 per cent – 1.8 percentage points higher than last month (2.8 per cent) as the cost of food continued to rise.

In response, two thirds of Brits (67 per cent) are looking for ways to get more value from their weekly shop, with almost half of these shoppers (48 per cent) paying closer attention to the prices of items they buy regularly, and the same number buying budget or own-brand goods over branded goods. More than four in 10 (44 per cent) are opting for cheaper “wonky” vegetables, and one in four (26 per cent) is only buying items that are discounted or on offer. A further 13 per cent are even growing their own produce at home to save money. 

Pharmacy, health & beauty stores were a bright spot, growing 3.8 per cent in October – considerably higher than last month (0.8 per cent) – suggesting that image-conscious consumers are still keen to purchase items such as make-up and toiletries, even while spending more nights in. 

Furthermore, Barclaycard adds that almost half (48 per cent) of Brits are planning to cut down on Christmas purchases, including festive activities and gifts, to save money this year. Of these consumers, six in 10 (59 per cent) will be spending less on gifts for family and friends, 44 per cent will cut back on festive food and drink, including turkey and mulled wine, and two fifths (42 per cent) will curb their spending on Christmas parties and socialising. 

In addition, a fifth of Brits (21 per cent) plan to set a spending limit with their friends and family for gift purchases and a similar proportion (19 per cent) have started their Christmas shopping earlier this year to spread the cost. One in 10 (10 per cent) thrifty shoppers even plan to buy more second-hand / pre-loved items to give as presents this year. 

“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,” said Esme Harwood, Director at Barclaycard. “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.”