Consumers have reduced non-essential spending amid concerns about the cost-of-living crisis, data has shown
UK consumers slashed spending on luxuries and dining out in March as household incomes continue to suffer amid stubborn double-digit inflation, Bloomberg reported on Tuesday, citing Barclays data.
More than half of Barclays cardholders cut spending on luxury items and one-off treats, while six in ten trimmed expenses on eating out and purchases of new clothes, the bank said after analyzing data on credit and debit card transactions.
According to the lender, overall consumer spending grew 4% last month from a year earlier, with expenses in supermarkets climbing 7.8% – well below the rate of increase in prices for food and non-alcoholic drinks.
Overall inflation for food and non-alcoholic beverages surged to 18% in February, the highest level since 1977.
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The data indicates that British consumers are increasingly changing their shopping habits to save money amid the worsening cost-of-living crisis. Cash-strapped households are becoming more exposed as wage growth fails to keep pace with the biggest jump in prices in 40 years.
Annual inflation unexpectedly rose to 10.4% in February, marking the sixth straight month in double digits and placing further pressure on UK households.
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April 12, 2023 at 11:04AM