Card spending in January up 27% compared to 2020

Retail debit card spending soared 27% in the first two weeks of January compared to 2020, months before the pandemic hit, according to latest data from Lloyds Bank.

The research found that 42% more was spent at restaurants and bars, whilst high-street stores, such as clothing outlets (34%), electrical goods stores (27%) and department stores (25%), all saw increases in the amount spent on debit cards by customers.

Recreational spending, including trips to cinemas, theme parks and museums, jumped 22%.

Holiday spending also fell by 39%, compared to 2020, as the uncertainty surrounding travel remains.

Supermarket spending fell 4% as people spent less time in their homes, compared to the lockdown in place in 2021

With all nations under work from home guidance this month, commuting spend fell 13%, despite this, fuel spend rose 26%.

Almost a third (30%) of all retail card spending was online in the first two weeks of January, compared to 21% in January 2020 and 38% in January 2021.

It is worth noting, that when looking at this year’s data compared to the first two weeks of January in 2021, the UK was in strict lockdown to combat the Covid delta variant.

Gabby Collins, Payments Director Lloyds Bank, said “Consumer spending behaviour, as we have seen over the past 18 months, reacts quickly to changes in government guidance. Looser restrictions over Christmas and the New Year helped spending surge in 2022, compared to both pre-pandemic 2020 and January lockdown 2021, and the pandemic has generally encouraged more people to use their cards for every day spending.”

“While the increase in spending could be considered a sign of consumers ongoing resiliency, rising inflation and concerns around the cost of living could leave a lasting impression on household finances. As we have seen before, spending power is likely to continue to be dictated by the impact of the pandemic on the wider economy.”