Post-election confidence in the UK economy has reached its highest in more than three years according to the most recent data released from Barclaycard. The data is compiled from almost half of the UK’s credit and debit card transactions, and so is a robust barometer providing an in-depth view of UK spending.
Consumer spending grew 3.9 per cent year-on-year in January, marking a distinct uplift from the low levels of growth seen in 2019. Consumers are feeling upbeat about the country’s economic prospects, with three quarters confident about their household finances.
Eat Out, Takeaway
Eating out falls while takeaway grows substantially, again. Restaurant spending by consumers fell for the third month in a row, by 3.5 per cent, while takeaway expenditure grew 11.4 per cent.
Consumer confidence is on the rise, with four in ten (42 per cent) consumers upbeat about the country’s economic prospects, the most positive figures reported since September 2016. Three quarters (74 per cent) also feel confident about their household finances, the highest seen since February 2019.
In a trend seen for several months, clothing stores continued to see a decline, with the sector decreasing 2.2 per cent and electronics stores also contracted by 1.4 per cent.
Sustainability driving spending trends
Looking ahead, just over half of UK adults believe the pace of economic growth could decline in the next few months. Consumers are also thinking carefully about the most responsible way to spend their money. More than half said they have become more conscious of their personal impact on the environment and consequently intend to change their behaviour. A third of shoppers also plan to buy fewer plastic goods.
For all in the hospitality industry this data is key to understanding how UK consumers are choosing to spend their money, and time.
For many restaurants adapting to offer takeaway options through click and collect can be a way of maximising revenues. For all across hospitality the use of products seen by consumers as environmentally unfriendly will impact on business negatively.