Socialising, shopping, and staycations were top of the agenda for Brits last month
Consumer card spending increased by 15.4% in August, compared to the same period in 2019, before the pandemic.
Data from Barclaycard, which sees nearly 50% of the nation’s credit and debit card transactions, reveals how the later stages of summer gave the economy a boost.
The company also drew attention to concerns people have around inflation levels, which is causing some to reconsider their spending.
Spending on essential items rose by 14.5% in August, compared to the same period in 2019, bolstered by spending at supermarkets and food and drink specialist stores, which were up 15.2% and 76.9% respectively.
Non-essential items rose 15.9% – the biggest jump since before the first national lockdown, and ahead of July’s high of 10.4%– as consumers continued to spend more on socialising, UK holidays, and back-to-school / back-to-office supplies.
The boom in summer socialising also had a positive impact on entertainment – such as theatre, festival and theme park tickets – which reached a new high of 24.2%, while taxi and fuel spending also increased to 20.6% and 7.2% respectively.
The gradual return of workers to UK offices, and parents preparing their children for the new school year, has also given retailers a welcome boost. Clothing rose for the fourth consecutive month, reaching 33.5% growth online, and 12.8% overall, as shoppers took advantage of end-of-season sales to purchase workwear and school uniforms.
Department stores also benefited, recording a 4.4% increase, marking the second month of growth since the start of the pandemic – with the first in May this year (+8.6%) when non-essential shops had just reopened.
With office workers adjusting to new work and lifestyle patterns, this growth looks set to continue. Of those returning to the office after having worked from home during the pandemic, 34% plan to spend more on takeaway breakfast or lunch, and 26% intend to up their spending on socialising after work. A further 27% also expect to keep their work wardrobe updated by allocating a larger budget for new clothes, shoes, and accessories.
Over a third say rising inflation will make them more likely to seek value in the purchases they make, and 30% are concerned about the impact of inflation on the value of their cash savings. These fears have led to nearly two fifths of Brits making cut-backs now to ensure they can afford higher outgoings for Christmas.
Raheel Ahmed, Head of Consumer Products, said: “Socialising, shopping, and staycations were top of the agenda for Brits in August, as families and friends made the most of the school holidays, giving a welcome boost to hospitality and leisure businesses. Over the coming months, these sectors should also benefit from Brits returning to the office, as colleagues enjoy long overdue catch-ups over post-work meals and drinks.”