Half of the UK are cutting back on non-essential spending to brace themselves for higher energy bills this winter, research reveals.
A total of 46% of 2,000 respondents to Barclays monthly spending report said they would be reigning in outgoings ahead of the festive season, particularly on takeaways (56%), eating out (56%) and new clothes and accessories for day-to-day wear (50%).
As the festive season approaches – where Brits are planning on staying indoors more to curb costs – 71% said they now take food and drink from home to avoid paying premium prices at venues such as theatres and cinemas.
Yet even these economies are proving to be a testing process for shoppers, as seven in ten noticed items such as crisps and biscuits now contain less than is suggested by the size of the product’s packaging – a trend known as ‘slack-filling’.
Card spending slows
Concern over rising energy prices and the ongoing cost-of-living crisis was reflected customer credit card spend in September. The bank’s study revealed its card spending grew by just 2.6% compared to the same time last year – the smallest rise since September 2022 (1.8%).
Due to October’s surprisingly warm weather, shoppers dodged buying a new winter wardrobe, meaning coat and jumper purchases declined by 3% – leading to the fourth month running of declining sales at clothing retailers.
One sector which benefited from October was hospitality, with pubs and bars experiencing a 5.9% boost in spending from fans following the home nations’ progress at the Rugby World Cup.
‘Oomph’ has gone out of the spending for ‘squeezed’ shoppers
Jack Meaning, chief UK economist at Barclays, said: “It looks as though the oomph continues to go out of squeezed UK consumers. The latest transaction data shows they are pulling back from discretionary spending and increasingly worried about their future ability to spend, adding to the picture painted by other data.
“Third-party consumer confidence data showed a significant drop in October, coming off the back of retail sales contracting significantly in September. While some of these effects might be being amplified by unseasonal weather, it’s hard to dismiss the growing evidence.”
