Consumer spending in the UK experienced a mixed performance in November, according to the latest Barclays Consumer Spend report. Overall consumer card spending fell by 0.5% year-on-year, marking the first decline since July. Essential spending saw its steepest fall in over five years, dropping by 3.1%, largely due to a slowdown in supermarket expenditure.
Despite this downturn, non-essential spending increased by 0.8%, driven by strong performances from bars, pubs, and clubs (up 3.5%) and entertainment (up 10.8%). The release of blockbuster films such as "Gladiator II," "Paddington in Peru," and "Wicked" contributed to a significant boost in cinema spending, which rose by 22.8%.
Karen Johnson, Head of Retail at Barclays, commented on the trend: “Brits are still prioritising quality time out with family and friends, evidenced by the strong performance of pubs and cinemas in November.”
Retail sectors faced challenges as cold weather impacted footfall on high streets. General retailers saw a decline after three months of growth, while clothing and sports & outdoor categories also contracted significantly.
In anticipation of Christmas expenses, many consumers are looking for ways to manage costs effectively. A third of those celebrating Christmas are seeking festive offers or buying presents early to spread costs.
Jack Meaning, Chief UK Economist at Barclays noted: “Understandably, a number of factors weighed on consumer spending in November... 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.”
The hospitality sector showed resilience with an overall growth of 4.7%. Bars and clubs experienced their highest growth since July at 3.5%, while restaurants moved back into positive territory with an increase of 2.1%.
Travel expenditures also grew during November with airlines seeing a rise of 10.6% and travel agents up by 7.3%. Hotels reported their highest growth since October last year.
Barclays' data is derived from extensive customer transactions through credit and debit cards across its issuing business lines.