According to the latest data from Barclaycard, which combines hundreds of millions of customer transactions with consumer research to provide an overview of UK consumption, household spending on essential items like food and fuel grew at the fastest pace in two years last month as the petrol shortage saw drivers rush to fill up.
Card spending for the month jumped 13.3%, with spending on essentials surging 14.4% driven by rising prices both at supermarkets and petrol stations.
The survey also noted growing shortages of goods at the supermarket due to the lack of HGV drivers, with almost half of respondents reporting empty shelves and a fifth saying fresh fruit and vegetables were harder to find.
Spending on non-essential items also rose by double digits in September, but the increase was less than in August as fewer consumers felt confident in splashing out on non-essentials.
This combination of a slight fade in confidence and a squeeze on household finances for the essentials meant more people turned to discount chains last month, driving up spending by almost 30% compared with September last year.
Moreover, the rising cost of everyday items caused 90% of respondents to be ‘concerned’ about the impact on their finances, which is not the kind of news retailers will want to hear as they gear up for the most important part of their year.
On a brighter note, pubs, clubs and bars were celebrating with a 43.5% surge in spending last month as the return to work meant more after-hours socialising with colleagues, and entertainment saw its strongest growth in two years as town and city centres were once again busy.
Barclaycard head of consumer products Raheel Ahmed acknowledged the dip in confidence but remained upbeat about the outlook for the final quarter.
‘Consumers are starting to feel the impact of rising prices on their personal finances, which is also hampering confidence levels. While this is causing some Brits to seek out value in their purchases, as the festive season approaches, we expect spending to gradually gather pace as shoppers start buying gifts and preparing for gatherings with loved ones.’
