According to data from Barclaycard, consumer spending rose +4.5% YoY in August, maintaining the strong level seen in recent months as UK consumers struck a balance between covering the cost of essentials and enjoying the final stretch of summer.
Non-essential expenditure demonstrated growth of +3.4%, indicating that consumers are balancing their budgets to cover the necessities while allowing for some discretionary spending.
Having spent more than usual over summer, a third of consumers (34%) say they are now planning to reduce their expenditure. Of these consumers, 44% say they will do so by cutting back on treats for themselves, while 39% say they plan to spend less on entertainment.
A degree of uncertainty about the future is also likely to be driving this caution. Nearly six in 10 (58%) are worried that rising inflation will leave them with less money to spend each month, while a similar proportion (56%) are concerned that rising energy prices will leave them worse off.
Esme Harwood, a director at Barclaycard, says: “Brits have been feeling confident enough in their spending power to enjoy summer events and evenings out. However, it’s clear they’ve struck a balance between spending on essentials and treating themselves.
“Looking ahead, it appears that many consumers are planning to tighten their belts and keep a closer eye on their finances after spending more than usual over summer.”
