Retail spending in the UK showed signs of recovery in October, with a 0.7% year-on-year increase, as reported by Barclays Consumer Spend. This growth was mainly driven by non-essential spending, which rose by 2.1%, supported by entertainment and retail sectors.
Entertainment spending surged by 13.5%, attributed to Coldplay ticket sales and popular streaming series like "Rivals." Digital content subscriptions also saw a rise of 9.7%. Retail performance improved, with general retailers experiencing a 5.2% growth, the highest since September 2023.
Essential spending declined by 2.2%, marking its most significant drop since April 2020. Supermarket spending decreased slightly by 0.8% as concerns over food price inflation eased.
The report highlighted mixed feelings about Black Friday shopping, with some consumers preferring extended sales periods while others expressed diminished enthusiasm for the event.
Karen Johnson from Barclays noted that despite longer nights, Brits continue to prioritize entertainment and streaming services over dining out. Jack Meaning from Barclays commented on easing price pressures and improving consumer confidence, suggesting potential real spend growth towards the year's end.