Card spending grows 2.0% in September, as consumer confidence improves, despite pre-Budget uncertainty
Card spending rose 2.0 % year-on-year in September, just below August’s 2.1 % growth, and remaining below the latest CPIH inflation rate of 3.3 %. Essential spending increased 2.5 %, outpacing the 1.8 % increase in non-essential spending, driven largely by a 17.3 % spike for fuel. Meanwhile continued demand for meals and drinks out supported hospitality & leisure’s 2.7 % boost.
Confidence in household finances climbed to a seven month-high at 67 %, while confidence in job security (45 %), and consumers’ ability to live within their means (73 %) also improved (up from 44 % and 71 % respectively). Confidence in the UK economy stabilised at 26 % – on par with August’s figure.
| Barclays consumer confidence measures | |||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | |
| Household finances | 66% | 67% | 65% | 64% | 65% | 64% | 64% | 66% | 67% |
| Job security | 43% | 44% | 44% | 43% | 43% | 46% | 47% | 44% | 45% |
| Ability to spend on non-essentials | 54% | 55% | 53% | 49% | 52% | 51% | 53% | 54% | 54% |
| Ability to live within means | 71% | 74% | 71% | 69% | 70% | 70% | 69% | 71% | 73% |
| Strength of the UK economy | 24% | 25% | 21% | 22% | 25% | 24% | 30% | 26% | 26% |
Despite improving confidence in their own finances, consumers remain cautious ahead of the Autumn Budget. Nearly seven in 10 consumers (68 %) are concerned about its potential impact on their household finances, while 61 % are concerned about possible tax changes. Four in 10 (38 %) feel less sure than in previous years about the implications of the announcements that may be made.
This uncertainty is influencing household decision-making; a quarter (25 %) are reportedly building up a precautionary savings buffer, and 30 % say they’re reducing non-essential spending, while 27 % report delaying both major purchases and important financial decisions pre-Budget. Despite this, 61 % feel confident in their ability to make good financial decisions in uncertain times and 53 % feel in control of their finances, even in times of volatility.
Warm September weather boosts hospitality & leisure
Non-essential spending increased 1.8 % in September, with hospitality & leisure continuing its strong streak, up 2.7 %, following August’s 3.3 % growth. Within entertainment, up 1.5 %, cinemas, bowling alleys, and golf clubs all performed particularly well.
After the summer weather lasted throughout most of September, the overall eating & drinking category grew 2.4 %. Restaurants, cafes & bakeries were up 2.1 %, while bars, pubs & clubs enjoyed a 3.8 % boost, marking their fourth consecutive month of growth.
| Growth in Hospitality & Leisure Spending | ||||
| June | July | August | September | |
| Hospitality & Leisure | 1.0% | 2.2% | 3.3% | 2.7% |
| Entertainment | 0.2% | 2.0% | 5.9% | 1.5% |
| Bars, Pubs & Clubs | 0.7% | 7.4% | 2.7% | 3.8% |
| Restaurants, Cafes & Bakeries | 0.0% | 2.1% | 1.5% | 2.1% |
Digital content & subscriptions also saw a significant spike in spending, up 7.8 %, with transaction volumes up 4.2 %, thanks to the popularity of streaming hits like Slow Horses and The Gentlemen as half (47 %) of consumers said they were likely to spend Autumn nights in front of the TV.
Within retail, up 1.1 % overall, food & drink specialist stores (6.3 %), general retailers & marketplaces (4.4 %), and pharmacy, health & beauty (4.0 %) were among the month’s strongest performers.
Rohan Kumar, head of spend insights at Barclays, said: “Spending maintained momentum in September, with growth across both essential and non-essential categories as confidence in household finances reached a seven-month high. Warmer weather supported another strong month for hospitality and leisure, while the rise in digital subscriptions suggests consumers are balancing socialising with autumn nights at home, even as pre-Budget uncertainty keeps value and careful decision-making front of mind.”
Overall growth figures
| Spend Growth | Transaction Growth | |
| Essential | 2.5% | 0.9% |
| Non-Essential | 1.8% | 2.2% |
| OVERALL | 2.0% | 1.7% |
| Retail | 1.1% | 1.9% |
| Clothing | -1.3% | 3.8% |
| Grocery | 0.0% | 1.0% |
| -0.8% | -0.3% |
| 6.3% | 8.2% |
| Household | 1.2% | 5.1% |
| 1.2% | 0.5% |
| 1.0% | 10.7% |
| 1.0% | 2.9% |
| 3.5% | 1.4% |
| General Retailers | 3.6% | 3.1% |
| 4.4% | 4.7% |
| -1.2% | -3.6% |
| 2.8% | -1.7% |
| Specialist Retailers | 2.6% | 1.1% |
| 4.0% | -0.7% |
| -3.3% | -3.9% |
| 4.1% | 4.5% |
| Hospitality & Leisure | 2.7% | 1.2% |
| Digital Content & Subscriptions | 7.8% | 4.2% |
| Eating & Drinking | 2.4% | -0.4% |
| 2.1% | -0.5% |
| 3.8% | 4.4% |
| 1.8% | -2.9% |
| Entertainment | 1.5% | 6.6% |
| Hotels, Resorts & Accommodation | 2.7% | 0.4% |
| Travel | 2.0% | 1.1% |
| 3.2% | 5.5% |
| 2.2% | 0.4% |
| -0.8% | -0.8% |
| 1.7% | 4.0% |
| Other | 3.4% | 2.3% |
| Fuel | 17.3% | 1.9% |
| Motoring | -4.1% | 4.2% |
| Other Services | 0.4% | 1.3% |
| Insperiences | 6.8% | 3.5% |
| Online | 1.7% | 4.2% |
| Face-to-Face | 2.3% | 0.6% |