March sees four percent consumer card spending increase

Spending on groceries increased by 7.1%, as 88% of shoppers say they’re concerned about the impact of rising food prices on their household finances, and more than six in 10 are finding ways to reduce the cost of their weekly shop.  

Additionally, more than half of these value-seeking consumers are cutting down on luxuries or one-off treats for themselves, while a sizeable proportion are planning meals in advance to avoid wasting food or using vouchers to get money off their grocery bill. Spending on utilities, meanwhile, rose by 39.3% year on year.  

The research also found Generation Z consumers are spending higher proportions of their income on discretionary purchases compared to those over the age of 25, with them spending 41% less than older groups on essential items while their spending on non-essential items is only 21% lower.  

These consumers are also spending twice as much as older consumers on fast food and takeaways, although older age groups are spending nearly six times more than Generation Z on “home improvements and DIY”.  

Barclays director Esme Harwood said: “The below-inflation rise in grocery spending shows that Brits are still trying their hardest to shave money off their weekly shop, as energy bills continue to rise. Cutbacks are also impacting restaurants, with a number of cash-strapped consumers even avoiding social plans that involve meals out. 

“Hospitality and leisure businesses will be hoping that the busy Bank Holiday period provides a boost to counteract consumers’ everyday cost-savings. While predictions for the Coronation weekend are lacklustre, the results from Mother’s Day are more encouraging, demonstrating that Brits are still taking advantage of one-off moments to go out and celebrate.” 

Its head of European economics research Silvia Ardagna added: Inflation remains stubbornly high, with food and beverage prices up notably in February, and driving the sharp acceleration in prices set by restaurants and hotels. 

“In this light, it is not surprising that consumers are moderating spending in these categories. But, with the decline in energy prices, we also expect a fast deceleration in food prices, which should provide some support to households’ consumption, and allow the UK to experience just a mild recession in the first half of 2023.”