Consumer card spending grew 4.4% year-on-year in December, up slightly on November (3.9%), new research reveals.
Data from Barclays, which sees nearly half of the nation’s credit and debit card transactions, reveals that spending on essential items increased 5.1% in December 2022, with spend on fuel seeing its smallest rise (10.6%) since March 2021, as petrol and diesel prices continued to fall.
Supermarket spend remained in growth (up 5.5%), however, this was lower than the 6.5% growth observed in November. Food and drink specialist stores also fell back into decline (-0.2%) – a possible sign that shoppers had already stocked up on festive food and drink, making the most of discounts and deals offered in the run-up to Christmas, while also looking to get ahead of any supply chain issues.
In addition, the Barclays data shows the percentage of Brits reporting concerns about rising food prices remains high at 91%, and 65% say they have been looking for ways to reduce the cost of their weekly shop – a marginal reduction compared to November (69%). Nearly half of these shoppers (49%) are buying budget or own-brand goods instead of branded goods, and 28% are only buying items that are discounted or on offer.
The data reveals confidence in household finances rose slightly to 61%, up from 57% in November, while confidence in the strength of the UK economy remains steady at 18%.
Esme Harwood, Director at Barclays, said: “It’s worth noting that these figures look more positive in comparison to December 2021, as the spread of Omicron kept Brits away from high streets and hospitality venues. It seems this year shoppers returned to the high street to make the most of the festive period despite the cost-of-living challenges.”
