Consumer spending growth slowed to 3.3% year on year in November, dipping to the lowest level of growth since March, according to new data from Barclaycard.
Data from the brand, which resolves nearly half of the nation’s credit and debit card transactions, shows that expenditure on essentials rose by 4%, bolstered by a rise in petrol spending (+8.9%) amidst ongoing fuel price increases, while non-essential expenditure saw a slowing to 2.9% growth.
A survey of 2,000 consumers also found that 64% of shoppers are being careful to seek out value for money in the purchases they make, while just 16% of consumers said they expect to spend less in December as a result of making Christmas purchases in the final week of November
Barclaycard director Esme Harwood said: “November was a mixed month, with department store and clothing spending contracting but entertainment remaining strong. It seems shoppers are yet to make their main Christmas purchases for friends, family and loved ones – despite many retailers offering Black Friday discounts to try and boost sales.
“This may be unsurprising, given we’ve seen consumer confidence in household finances fall to a record low, likely influenced by ongoing political and economic uncertainty.
“As the final countdown to Christmas begins, it will be interesting to see whether shoppers will be enticed back to the high street over the next few weeks.”
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