Cost-of-living crisis starting to impact consumer spending

Consumer card spending saw rose by 18.1% in April, compared to the same period in 2019, however inflation and the cost-of-living crisis are impacting hospitality spend, data from Barclaycard has revealed.

The increase in spending, the largest seen since October 2021, was helped by a "significant" increase for the travel sector, which saw a 16.6% uptick in expenditure on hotels, resorts and accommodation compared to 2019.

Some 21% of Brits said that they are making social or holiday plans for the Queen's Platinum Jubilee four-day weekend, with 16% of this cohort opting for a staycation in the UK.

However, data also showed that inflation and the cost-of-living crisis have led to smaller uplifts in the hospitality and retail sectors, as consumers cut down on luxuries.

Spending on takeaways and night outs also fell slightly from 79.6% and 41.7% in March 2022 to 77.9% and 39.2% in April 2022.

José Carvalho, head of consumer products at Barclaycard, said: "The impact of rising living costs on consumer spending is starting to show, with a number of categories – including subscriptions, takeaways, and bars, pubs and clubs – seeing less growth than in March as Brits begin to feel the pinch. However, the improvements seen by airlines and travel agents are particularly positive, and hopefully point to a recovery in spending on international travel later this year.

"While concerns around rising household bills may continue to hamper spending on non-essential items, the upcoming Platinum Jubilee Weekend and summer months should provide opportunities for Brits to spend on celebrations and make the most of warmer weather."