Barclays has released its 2024 consumer spending report, highlighting key trends and a modest increase in card spending. The report shows that consumer card spending grew by 1.6% year-on-year, which is lower than the previous year's growth of 4.1%. This shift indicates that consumers are being more selective with their purchases, focusing on experiences and affordable luxuries.
Entertainment spending saw a notable rise of 5.8%, fueled by live music events like Oasis's reunion tour and popular movies such as "Wicked" and "Wonka." On average, individuals who spent on entertainment shelled out £343 each throughout the year.
The 'lipstick effect' was evident as pharmacy, health, and beauty store sales increased by 7.1%. Beauty spenders averaged £291 each over the year. Digital content also performed well, with a growth of 13.2%, driven by streaming services despite concerns about rising subscription costs.
Travel expenditure rose by 6.9%, although it did not match the previous year's increase of 15.2%. Holidaymakers spent an average of £1,117 each on travel-related expenses.
The report also highlighted several other consumer behaviors: double-dip shrinkflation affected common grocery items; nearly half of Brits opted for more casual socializing at bars over restaurants; supermarket spending slowed down; and there was a decline in home improvement expenditures as homeowners focused on sustainability rather than style.
Karen Johnson from Barclays remarked on these trends: “2024 demonstrated Brits’ strong appetite for experiences very clearly, spending selectively elsewhere in order to find room in their budgets for the moments and treats that most matter to them.”
Overall, non-essential spending saw a slight rise of 1.9%, while essential spending grew by just 0.9%. Barclays continues to analyze UK consumer behavior through comprehensive data from its card transactions.