The highs and lows of consumer spending
We’re well into the run-up to Christmas, and it seems as if consumer spending is already at an all-time high. Recent data collected by Barclaycard* found that almost half of the nation’s credit and debit card transactions had risen 4.4% year-on-year in October. It’s no surprise that supermarkets were the front-runners in the race, with spending rising 2.3%. But Surprisingly, consumer spending at discount stores had fallen by 14%, according to the research.
What has triggered a rise in consumer spending? Well, according to Barclaycard’s study, 19% of consumers say they have more spending money each month as a result of increased earnings. Of the group, 49% of those are either saving their extra pennies or paying off debt – while 36% are preparing and putting money towards their Christmas fund.
But while there are highs, there are lows and the survey revealed that consumer confidence has lowered since 2014. Only 28% of those surveyed had confidence in the UK economy – the joint lowest level since Barclaycard began monitoring consumer confidence in 2014.
The Director of Barclaycard, Esme Harwood, said: “While the retail sector has continued to face challenges, the experience economy provided a welcome boost to overall spending in October with consumers going for meals out, and purchasing tickets to events and shows.
“Ongoing economic and political uncertainty has led to a decline in confidence, with consumers remaining cautious with their spend in the run-up to Christmas.”
While it’s all good and well that consumer spending is benefitting the economy, if you believe your spending habits are spiraling out-of-control, talk to a professional as soon as possible. Talk to Sensible Debt Advice. We’ll be happy to support you and conjure a plan to get you back to feeling confident about your own spending habits.
Contact us now for a confidential and no fee chat on 01656 661426 or email Clive here.