BUSINESS INTELLIGENCE
CONSUMER SPENDING
Consumer confidence rising Research reveals that more Brits are feeling confident about their household finances and ability to live within their means each month.
C
onsumer card spending grew 7.7% year-on-year in July and 1.6% month-on-month, according to new figures from Barclaycard. Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, reveals that spending on essential items rose by 7.0% year-on-year, greater than the 4.0% rise recorded in June. The increase was driven largely by fuel and supermarket shopping, which grew by 29.9% and 2.1%, respectively, as the prices of petrol, diesel and everyday items continued to climb. Meanwhile, average spending on utility bills rose by 43.9% year-on-year, even higher than last month’s growth of 39.6%. At the supermarket, 89% of Brits report seeing increases in the prices of everyday items, with the majority noticing that butter (53%), milk (51%), and meat (47%) are more expensive than they were in June. This comes as 45% of shoppers say they are looking for ways to get more value from, or to reduce the cost of their weekly shop. Over half (52%) of this group are paying closer attention to the prices of items they buy regularly, and the same proportion are cutting down on luxuries or one-off treats. In addition, 37% are purchasing certain items on a need-to-buy basis to save money and avoid waste, resulting in an emerging trend for smaller
basket sizes, and more frequent trips to the supermarket to restock when items run out. The average value of a supermarket transaction has dropped from £23.67 in January 2021 to £19.33 in July 2022, while the average number of monthly supermarket purchases per person increased from 8.70 to 11.91 over the same period. José Carvalho, head of consumer products at Barclaycard, said: “We know
that this is a really challenging time for many consumers, so it is reassuring to see that more Brits are feeling confident about their household finances and ability to live within their means each month. “This shows that, faced with difficult circumstances, many are finding ways to budget and manage their finances successfully, to cope with ongoing inflationary pressures.”
WEDNESDAY 10TH AUGUST 2022 / ISSUE 117 / SLRMAG.CO.UK I 17
