Consumers cut back on essential spending in February in preparation for rising bills, according to the latest Barclays Consumer Spend report.
Card spending was up 1% year on year – lower than both January’s 1.9% and the latest CPIH inflation rate of 3.9%.
Retail spending rose marginally, by 0.6%, but the growth was propped up by electronic sales, while supermarkets saw a 1.1% decline.
Nine out of 10 consumers said they were concerned about rising household bills, ahead of anticipated increases in the cost of water, energy and council tax from April, according to Barclays. Concerns about inflation were also on the rise, reaching their highest level since September 2023, at 88%.
However, the despite the concerns, confidence in household finances reached the highest level Barclays had seen since it started tracking the measure in 2015, at 75%, up from 70%. “This is perhaps in part due to prudent money management, as 40% say they are finding ways to save money amidst increasing costs,” Barclays said.
Consumers are also increasingly focused on healthy choices when it comes to food, according to the report. More than a quarter (27%) of those surveyed said they planned to focus more on healthy eating as warmer weather approached, and one in three said they were paying closer attention to ingredient and nutrition labels. A fifth (22%) had considered growing their own fruit and vegetables at home, or were already doing so.
Another 27% said they were more likely to visit shops and restaurants that offered “healthier” options, increasing to 45% in those aged 18-24. Sought-after alternatives included zero-sugar treats (33%), organic or whole foods (29%) and low or no-alcohol drinks (24%).
Barclays head of retail Karen Johnson said: “It’s encouraging to see confidence in household finances reaching a record high as consumers are making conscious adjustments to their essential spending, by reviewing their budgets and setting financial goals.
“Shoppers are clearly seeking more bang for their buck, while prioritising healthy habits, and finding a balance between caution and comfort ahead of the upcoming increases to household bills.”
Barclays overall growth figures
| Spend growth | Transaction growth | |
|---|---|---|
|
Essential |
–1.0% |
–3.9% |
|
Non-essential |
2.1% |
1.3% |
|
OVERALL |
1.0% |
–0.8% |
|
Retail |
0.6% |
–2.1% |
|
Clothing |
0.4% |
2.2% |
|
Grocery |
–0.8% |
–3.9% |
|
–1.1% |
–3.7% |
|
2.0% |
-5.0% |
|
Household |
1.1% |
3.7% |
|
–2.4% |
–6.3% |
|
6.7% |
15.9% |
|
2.4% |
0.8% |
|
–4.9% |
–5.9% |
|
General retailers |
1.1% |
–0.1% |
|
1.6% |
–0.4% |
|
0.6% |
2.8% |
|
–1.6% |
–1.8% |
|
Specialist retailers |
4.4% |
–1.0% |
|
8.9% |
0.2% |
|
–1.9% |
–3.0% |
|
2.9% |
–2.1% |
|
Hospitality & leisure |
2.9% |
0.7% |
|
Digital content & subscription |
5.1% |
3.6% |
|
Eating & drinking |
–0.4% |
–0.4% |
|
–0.3% |
–2.4% |
|
–2.0% |
–4.0% |
|
0.2% |
4.0% |
|
Entertainment |
||
|
Hotels, resorts & accommodation |
4.0% |
6.5% |
|
Travel |
4.7% |
–0.4% |
|
5.1% |
–0.6% |
|
5.6% |
10.1% |
|
0.6% |
–4.8% |
|
1.8% |
7.4% |
|
Other |
–0.7% |
0.2% |
|
–3.6% |
–3.5% |
|
|
Motoring |
–6.4% |
4.1% |
|
Other services |
3.6% |
2.5% |
|
Insperiences (at-home experiences) |
2.5% |
3.6% |
|
2.8% |
2.5% |
|
|
Face-to-face |
–0.5% |
–2.2% |
Consumer confidence
| Confidence measure | January 2025 | February 2025 |
|---|---|---|
|
Household finances |
70% |
75% |
|
Job security |
47% |
48% |
|
Ability to spend more on non-essentials |
56% |
59% |
|
Ability to live within means each month |
74% |
77% |
|
Economic confidence |
January 2025 |
February 2025 |
|
UK economy |
21% |
25% |
|
European economy |
25% |
28% |
|
Global economy |
21% |
26% |
Source: Barclays
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