The year on year boost was largely driven by Coldplay World Tour ticket sales. Digital content and subscriptions also grew 9.7 per cent, as streamflation – the rising price of streaming services – continued, while popular programmes such as Rivals, Heartstopper, Nobody Wants This and Agatha All Along continued to encourage Brits to spend evenings indoors.
As the darker nights close in, Brits look set to stay on the sofa, for their sales shopping at least. As retail continues to show signs of recovery, many shoppers are planning ahead for Black Friday, with 45% of Brits saying they prefer browsing Black Friday deals online (compared to 16 per cent in-store), and three in 10 already having saved items in their online cart.
The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending
Consumer card spending grew by 0.7 per cent year-on-year in October – less than September’s increase (1.2 per cent) and below the latest CPIH inflation rate of 2.6 per cent.
Growth was propped up by spending on non-essential items, which climbed 2.1 per cent, driven by the strong performance of entertainment, up 13.5 per cent, and the recovery of retail, which recorded its third consecutive month of growth.
In October, essential spending saw its greatest fall (-2.2 per cent) since April 2020 (-2.9 per cent). Supermarket spending dipped -0.8 per cent, as consumers’ concerns about food price inflation eased, down four percentage points to 84 per cent compared to 88 per cent in September.
Spending at department stores rose by 4.7 per cent, meanwhile, clothing saw a 1.9 per cent boost, after growing 4.5 per cent in September.
Hospitality spending has seen big reductions
It’s not good news for the hospitality sector, with news that half of those surveyed (46 per cent) planned to cut down on discretionary spending to save money. This group listed eating out at restaurants (50 per cent), ordering fast food and takeaways (50 per cent) and drinking at pubs, bars and clubs (41 per cent) among their top cutbacks.
In October, spending on takeaways and fast food was flat, at 0.0 per cent, down from last month’s 0.8 per cent growth. Spend at bars, pubs and clubs also plateaued (0.0 per cent), representing the lowest growth for the category since September 2022 (-0.5 per cent).
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Travel plans
However, Brits have the sun in their sights. Three in 10 consumers (28%) have already booked a holiday for 2025, reflected in travel seeing an uplift of 6.7 per cent in October, largely owing to growth at airlines (9.3%).
The strong demand for travel was also highlighted by holidays ranking #1 in a list of discretionary spending priorities, chosen by 22 per cent of respondents. Three in 10 consumers (28 per cent) have already booked a getaway for 2025, with almost a quarter (23 per cent) of these holidaymakers booking early to save money, while one in three (31 per cent) will be visiting somewhere new next year.
Spending at travel agents fell slightly from September (7.8 per cent, compared with 9.2 per cent), with holidaymakers booking directly and cutting out the middleman to save money.
Karen Johnson, Head of Retail at Barclays, said: “The days may be getting darker and longer, but Brits continue to find the bright spots by prioritising the things they love.
“The drumbeat of incredible music artists performing here in the UK, such as Coldplay, means entertainment spending continues to climb, having reached 13.5 per cent growth in October. Meanwhile, the small screen continues to draw Brits to cosier evenings in, cutting back on evenings out at pubs, bars, and restaurants, instead enjoying streaming and shopping from the comfort of home.”
Spending related to the period September 23rd – October 20th 2023 vs September 21st – October 18th 2024.
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