Barclaycard

Consumer card spending grew 17.7% in March

Barclaycard data shows rising food and fuel prices dampened consumer confidence in March.

Card spending grew 17.7% in March compared to the same period in 2019, as people took advantage of sunnier weather and the lifting of all remaining Covid restrictions in England.

Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, reveals that spending on essential items grew 18.1% in March, the highest uplift since September 2021. This was largely driven by spend on fuel, which soared 26.1% as prices at the pump continued to climb.

In response to rising petrol and diesel prices, 41% of drivers say they are changing the way they travel. Of these, 54% are walking more often, 38% are cutting back on long car journeys, and 22% are opting to cycle instead.

The data shows supermarkets saw a 16.9% jump in spending – higher than the growth recorded in January (15.5%) and February (16%) this year – likely due to inflation. Feeling the pinch, 58% of shoppers are looking for ways to stretch their weekly grocery budget – 52% of this group are cutting down on luxuries, and 48% are switching from branded to budget or own-label goods.

Many are also buying in bulk to offset increasing prices; more than one-third of respondents admit to stocking up on everyday items such as tinned and dried products (13%), household supplies (11%), and tea & coffee (10%).

José Carvalho, Head of Consumer Products at Barclaycard, said: “Rising fuel prices and household bills are clearly starting to influence consumer behaviour, with many Brits changing their travel and shopping habits to save money. While this may dampen growth in the months ahead, we shouldn’t overlook the expected heatwave later in April, and the fast-approaching Easter holidays, both of which are likely to boost non-essential spending.”