While hospitality benefitted from early festive socialising, overall consumer card spending fell by 0.5% year-on-year in November, according to the latest Barclays’ Consumer Spend report.
This marked the first decline since July, falling considerably lower than the latest CPIH inflation rate of 3.2%.
Barclays head of retail at Karen Johnson said: “Brits are still prioritising quality time out with family and friends, evidenced by the strong performance of pubs and cinemas in November.
“People are finding to find ways to enjoy life’s little luxuries, and the festive season is no exception, with consumers making cutbacks so they can afford magical moments”.
Spending habits
Elsewhere, entertainment spending also rose significantly, increasing by up to 10.8%.
Cinema spending also saw a year-on-year increase of 22.8%, this was largely driven by bookings of recently released films such as Gladiator II and Wicked.
Previous consumer spending habits also saw an increase in sectors such as entertainment, clothing, health and beauty with less essential spending throughout categories such as pubs, bars and clubs.
Chief UK economist at Barclays, Jack Meaning said: “Understandably, a number of factors weighed on consumer spending in November, notably easing consumer confidence post-summer, and expectations that post-Budget, inflation and interest rates will stay higher in the coming months.
“Looking ahead, the extent to which we see a seasonal bounce around Black Friday and Christmas will serve as a good test of the economy going into 2025.”
Consumer confidence
Despite consumers’ willingness to spend more on factors such as leisure activities, the report highlighted growing concerns around the cost of living, with essential spending experiencing its biggest fall in more than five years.
This decline was attributed to a decline in supermarket spending, which fell by up to 1.8%.
Two-thirds of consumers (64%) also reported to be seeking ways to reduce the cost of their weekly shop.
Additionally, consumer confidence in both the UK and global economies declined to 25%, with inflation concern increases, which also rose to 87%.
The previous report, which covered October, showed just under half (46%) of individuals interested in interacting with the hospitality sector planned to cut down on discretionary spending in order to save money.
