Card spending increased by 0.7% in October

Data from Barclays shows that spending on cards rose by 0.7% in October, marking a slowdown from the 1.1% rise recorded in September.

Overall Retail spending grew 0.7% in October 2024, a slight fall compared to the year-on-year growth seen in September 2024 (1.1%). Nonetheless, this is a third consecutive month of growth for the sector as it continues its recovery following a challenging summer period. October 2024 was a strong month for General Retailers & Catalogues and Department Stores partly owing to retailers’ promotional activities, whilst consumers are generally feeling confident in their ability to spend on what matters most to them, with 46% saying there are luxury purchases they continue to buy, even when trying to budget.

Spend in the overall Hospitality & Leisure sector increased by 4.5% in October 2024, although this is a slight fall compared to September 2024 (5.1%). This comes as growth in Eating & Drinking categories, such as Takeaways and Fast Food, and Bars, Pubs and Clubs, remained flat (0.0%) compared to this time last year, as cost-savvy consumers look for ways to control their spend, and list ordering fast food and takeaways and drinking at pubs, bars and clubs among their top cutbacks. On the other hand, the Entertainment sector had another strong month with spend rising by 13.5%, driven by the sale of Coldplay World Tour tickets.

Karen Johnson, Head of Retail and Wholesale, Barclays Corporate Banking said “The Retail sector continued its recovery in October, as increased consumer confidence resulted in consumers prioritising the things they love, such as clothes and accessories, amid retailers promotional activities which provided a further incentive.”