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UK Consumer Spending Report
View our latest insights on how spending patterns are changing across the UK.
Barclays UK Consumer Spend Report gives you a unique and up to date picture of the nation’s spending habits based on the actual transactions, bringing it to life so you can take action and shape your strategy.
Our latest report looks at UK consumer spending patterns for the 20th July 2024 to 16th August 2024.
August key insights
Consumer spending rebounded in August, with the first positive growth since March, as the long-awaited British summer boosted spending in seasonal categories such as garden centres and specialist foods.
Head of Client Insights, Barclays
Essential card spending increased by 1.6% in August 2024 when compared to this time last year. This is an uplift compared to July 2024 (0.6%), as spend growth in Grocery, an Essential spend category, saw its largest uplift (1.9%) since March this year (2.7%).
Non-Essential card spending increased by 0.7% in August 2024 when compared to this time last year. This marks a return to positive growth following two consecutive months of decline, with the warmer weather boosting spend across a number of categories.
Fuel spend growth was -2.4% in August 2024, as we are still providing a comparison with a period when fuel prices were higher due the invasion of Ukraine this time last year. However, the spend growth is higher than it was in July 2024 (-2.6%), as fuel prices slightly increased over August.
The retail sector returns to growth, with in-store shopping resurgent due to the recent heatwave
Overall Retail spending, up 0.1% in August 2024, returned to growth for the first time since March this year, with brick-and-mortar businesses witnessing the ongoing resurgence of in-store shopping thanks to the recent heatwave. Notably, 55.7% of all credit and debit card spending in August was face-to-face, as opposed to online, the highest level so far this year. Seasonal categories such as Garden Centres also benefitted from the weather, as consumers invested more time and money sprucing up their outdoor spaces.
Spend in the overall Hospitality & Leisure sector also increased in August 2024, up 3.8%, and an uplift compared to the year-on-year growth in July 2024 (1.8%). This growth was predominantly fuelled by the Travel sector, with Airlines and Travel Agents both having a particularly strong month, following news that many airlines have been offering last-minute holiday deals in order to tempt consumers abroad.
Hospitality and Leisure
Consumers snap up last-minute holiday deals, boosting the Travel sector
The Travel sector had a particularly strong month in August 2024, with spend increasing by 6.8%, following the news that many airlines are offering last-minute holiday deals in order to tempt consumers abroad. In particular, Airlines saw their highest uplift (8.3%) since March 2024 (9.7%), whilst Travel Agents had their strongest month (7.2%) since February this year (10.1%).
Meanwhile, whilst growth in the Entertainment sector remained flat (0.0%) year-on-year, spend did rise by 17.7% in August 2024 compared to July 2024. This was likely fuelled by this summer’s blockbuster offerings, with ‘It Ends With Us’, ‘Twisters’ and ‘Deadpool vs Wolverine’ drawing consumers to cinemas.
On the other hand, spend on Takeaways & Fast Food only increased by 0.7% in August 2024, a fall compared to July 2024 (2.2%). This is perhaps related to consumers wanting to avoid ultra-high-processed foods, with 45% of consumers saying that they are prioritising buying raw or whole-food ingredients to prepare meals and snacks at home.**
The Entertainment sector performed well in August, helped by the release of summer blockbusters such as ‘Deadpool vs Wolverine’, whilst consumers snapped up last-minute holiday deals, boosting the Travel sector.
Head of Hospitality and Leisure, Barclays Corporate Banking
Consumers prioritise spend on small luxuries
Spend in the Other Food & Drink category, which includes bakeries, increased by 5.1% in August 2024, a significant uplift compared to July 2024 (1.4%). This comes as 47% of consumers say that they continue to spend on small, luxury purchases that bring them joy, even when trying to make cutbacks.**
Sweet treats, such baked goods, are the most popular type of pick-me-up that these joy-seeking consumers prioritise (45%), perhaps influenced by the rise of viral sensations like the ‘crookie’ and the ‘Dubai chocolate bar’ on social media.**
Retail
Retail spending returns to growth for the first time since March 2024
Overall Retail spending increased by 0.1% in August 2024, marking a return to growth for the first time since March this year. The uplift corresponds with the resurgence of in-store shopping, with 55.7% of all credit and debit card spending in August being face-to-face (as opposed to online), the highest level so far this year.
The retail sector also benefitted from an 8.0% increase in spending at Garden Centres, the category’s largest uplift so far in 2024, as the drier and hotter weather across large parts of the UK encouraged consumers to invest more time and money sprucing up their outdoor spaces.
However, the warm weather did not have a significant impact on Clothing retailers, with spend declining -1.7% in August 2024, although this was a slight improvement to July 2024 (-2.3%). Clothing remains one of the most common areas for consumers to rein in discretionary spending. Of the consumers (46%) who say they are planning to make cutbacks, 53% say they will spend less on clothing and accessories.**
The long-awaited warm weather in August unlocked pent-up demand across a number of retail categories, such as garden centres and butchers, as consumers dusted off their barbecue for the first time this year.
Head of Retail and Wholesale, Barclays Corporate Banking
Spend growth at Food & Drink Specialist retailers remains strong
Grocery spend saw its largest uplift (1.9%) since March 2024 (2.7%) this month, boosted by the strong performance of Food & Drink Specialist stores, such as butchers and delicatessens, which saw their highest increase (5.1%) since January 2024 (5.2%) thanks to consumers enjoying barbecues and picnics outdoors in the sunshine.
Meanwhile, demand for little luxuries continued to bolster Pharmacy, Health & Beauty retailers, with the category enjoying yet another month of growth (7.3%), reflecting the ongoing trend of consumers prioritising cosmetic pick-me-ups even while budgeting, sometimes referred to as the ‘lipstick effect’.
Barclays Market and Customer Insights
Barclays Market and Customer Insights unlocks a wealth of customer transaction data and brings it to life so you can take action and shape your strategy.
We can help you keep up-to-date with spending trends, monitor your market position and enhance your understanding of customer behaviour, based on actual customer spending.
Leveraging anonymised data from our 250 million monthly customer transactions in the UK can help you understand who your customers are and how, when, and where they spend.
Contact the Barclays Market and Customer Insights team
Appendix
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Spend growth Transaction growth Essential 1.6% 2.9% Non Essential 0.7% 2.1% Overall 1.0% 2.4% Retail 0.1% 2.2% Clothing -1.7% 1.7% Grocery 1.9% 3.7% Supermarkets 1.5% 2.5% Food & Drink Specialist 5.1% 10.2% Household -4.4% 1.8% Home Improvements & DIY -5.7% -2.8% Electronics -1.8% 7.2% Furniture Stores -7.8% -3.9% General Retailers 0.6% -0.2% General Retailers & Catalogues 1.4% 0.4% Department Stores 0.8% 6.0% Discount Stores -5.0% -7.4% Specialist Retailers 0.6% -0.3% Pharmacy, Health & Beauty 7.3% 2.3% Sports & Outdoor -7.4% -4.5% Other Specialist Retailers -0.6% -1.9% Hospitality & Leisure 3.8% 2.6% Digital Content & Subscription 8.9% 5.3% Eating & Drinking 1.5% 1.1% Restaurants -16.9% -18.3% Bars, Pubs & Clubs 3.2% 3.1% Takeaways and Fast Food 0.7% -0.1% Other Food & Drink 5.1% 2.8% Entertainment 0.0% -0.4% Hotels, Resorts & Accomodation 2.7% 2.7% Travel 6.8% 5.9% Travel Agents 7.2% 11.7% Airlines 8.3% 1.6% Public Transport 1.0% 1.4% Other Travel 9.6% 16.1% Other -1.1% 2.4% Fuel -2.4% -0.8% Motoring -7.3% 7.7% Other Services 3.2% 3.1% Insperience 3.0% 2.0% Online 1.8% 2.9% F2F 0.3% 2.2% -
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Data source
Barclays debit card and Barclaycard credit card transactions in the UK.Data range
The spending data in this report relates to the period 20th July 2024 to 16th August 2024.
Inclusion criteria:
Customers aged at least 16 in the relevant period. Active customers using card payments in the relevant period (excluding spending on banking products, i.e. mortgages, loans, savings, utilities, tax and gambling).Spending growth calculation:
Percentage difference between total spend per customer in the period 20th July 2024 to 16th August 2024 and total spend per customer in the period 22nd July 2023 to 18th August 2023.Spending categorisation:
- Essential: Childcare, healthcare, insurance, grocery, fuel and public transport spend.
- Other food and drink: cafes, bakeries and any other food and drink establishments that cannot be classified.
- Entertainment: gym memberships and leisure activities such as cinema, family days out, sports and theatre.
- General retailers: selling a wide range of different products, e.g. department stores, catalogue shops, online marketplaces.
- Specialist retailers: selling a particular category of goods, e.g. toy shops, jewellers, sports shops.
- Other services: education, legal, insurance, childcare, post office / delivery, charities and personal services, e.g. hairdressers.
- Insperience: Digital Content & Subscriptions, Takeaways & Fast Food, Hobbies, Crafts & Collections and Online Food & Drink Specialist retailers.**
*CPIH: Consumer Prices Index^ including owner occupiers' housing costs,
** Denotes a comment from the consumer confidence survey. The consumer confidence survey in this press release was carried out between 16th and 20th August 2024 by Opinium Research on behalf of Barclays. There were 2,000 respondents, providing a representative sample of UK consumers by age, gender, region, and income group.
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