Consumers to cut back on spend after summer

Consumers to cut back on spend after summer

Overall consumer spend increased 4.5% year-on-year in August in the UK, as people enjoyed the last of the summer.

Entertainment and leisure remained strong at 10.3% growth, with ticket sales up 8.6% and pub spending up 11.9%.

Essential spend also rose 6.9%, bolstered by rises in petrol (10.9%) and supermarket expenditure (5%).

However, as consumers spent more than usual over summer, 34% say they are now planning to reduce their expenditure, according to Barclaycard, which released the spending data.

The leisure sector could be hit particularly hard, as 39% say they’ll spend less on going to restaurants and having nights out.

“Brits have been feeling confident enough in their spending power to enjoy summer events and evenings out,” says Barclaycard director Esme Harwood. “However, it’s clear they’ve struck a balance between spending on essentials and treating themselves.

“Looking ahead, it appears that many consumers are planning to tighten their belts and keep a closer eye on their finances after spending more than usual over summer.”