Consumer confidence hit its lowest level in October, but pubs and restaurants stayed strong.
Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, saw consumer spending grow 4.4% year-on-year in October, however just 28% of consumers said they have confidence in the UK economy – the joint lowest level since Barclaycard started monitoring consumer confidence in 2014.
Non-essential expenditure, meanwhile, demonstrated a reasonable increase of 4.1%, powered by strong performances from pubs (11.7%) and restaurants (8.6%).
One fifth (19%) said their wages have gone up enough for them to have a little more money to spend each month, yet Brits remain cautious with their money. Of those with more money to spend following a pay rise, half (49%) are saving their extra money or paying off debt, and a third (36%) are currently putting it towards Christmas.
Esme Harwood, director at Barclaycard, said: “While the retail sector has continued to face challenges, the experience economy provided a welcome boost to overall spending in October with consumers going for meals out and purchasing tickets to events and shows.
“Ongoing economic and political uncertainty has led to a decline in confidence, with consumers remaining cautious with their spend in the run-up to Christmas.”