You are here: Home - Saving & Banking - News -

Consumer spending slumped more than a third in April

0
Written by:
13/05/2020
Consumer spending shrunk 36.5% year-on-year in April, data from Barclaycard reveals.

Spending on essential items declined 7.5%, largely attributed to a 59% fall in fuel spend, data from Barclaycard – which sees nearly half of the nation’s debit and credit transactions – revealed.

However, supermarket sales were boosted, climbing 14.3% as Brits made larger shops and prepared more meals at home.

Spending on non-essentials fell 48% with travel seeing an 87% fall while bars, pubs and clubs suffered a 97% decline.

But specialist food and drink stores such as off-licences, greengrocers, independent convenience stores, butchers and bakeries saw 38% growth.

Barclaycard said Brits continued to support local businesses, with more than half (57%) saying the current environment has made them realise how much they value these stores.

Home improvement and DIY spending dropped 43% but Brits took to the internet for items to spruce up their property and gardens with this category seeing a 27% rise.

Digital subscriptions also increased with growth of 50%. Online spend for eating and drinking, including takeaways, saw growth of 25%.

Savings on the up

Barclaycard said with many shops closed and much of the nation not commuting, nine in 10 UK adults have saved money on everyday expenses since the lockdown began.

Nearly a third (31%) are putting money into savings; 23% towards their next holiday; and 9% are planning to buy their family a treat.

As a result, the UK’s confidence in household finances remains at a robust 70%, rising to 85% for those aged 55.

However, despite the positivity, consumer confidence in the UK economy overall has dropped to its lowest level for at least six years: just 20% of adults feel positive – a 5% decrease from last month.

Confidence in job security also fell to its lowest level for 17 months to 42%.

Esme Harwood, director at Barclaycard, said: “It’s been a tough time for retailers as consumer spending has dropped considerably under lockdown. There are some bright spots, though, as Brits have turned their focus online and looked to takeaways, digital subscriptions and DIY to keep entertained and occupied.

“A renewed sense of community may be welcome news for independent businesses, with a growing desire to support local stores in life after lockdown.”

‘Reassess spend on throw-away items’

Svenja Keller, head of wealth planning at Killik & Co, said: “As we start to see non-essential shops such as fashion and homeware retailers open as early as June, we’ll reach a critical point in knowing if consumer spending habits return as we tip-toe back to normality, or if we’ll see a sustained level of cut-down on discretional spending.

“Many have reported seeing an increase in their bank balances at the end of the month, and now is a good time to reassess how much we spend on throw-away items. While we can still treat ourselves, this period may have taught us that some discretionary spend should be re-directed towards long-term savings and investments towards our ambitions and goals.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • More than one in 10 Brits have fallen victim to a #coronavirus-related #scam over the past two months, research sho… https://t.co/iZ3U6ppvhp
  • "The government needs to support the removal of non-ACM cladding from buildings that are under 18 metres as well,"… https://t.co/WW5ONNqBdH
  • RT @DASLegalUK: The nation has turned to online shopping, but what are our retail rights if we face issues with delivery, faulty items, ret…

Read previous post:
Applications now open for self-employed grant scheme

Self-employed workers whose businesses have been negatively hit by coronavirus can apply for a government grant from today.

Close