Credit, Collections & Insolvency News
Latest figures from Barclays show zero growth in consumer card spending in December, as households cut back on essential items and pub and restaurant meals in favour of spending on experiences.
The data showed that consumer card spending growth remained flat in December, at 0.0 per cent year-on-year – significantly lower than the latest CPIH inflation rate of 3.5 per cent. Cutbacks in essential categories were offset by growth in discretionary spending.
Essential spend dropped by -3.0 per cent in December, as lower petrol prices again impacted fuel spending (-11.6 per cent) and Brits made cutbacks owing to the impact of inflation; nine in 10 adults said they were concerned about both rising food prices (86 per cent) and household bills (87 per cent).
This chimes with the slowdown in supermarket spending (-2.0 per cent), as two in three (64 per cent) say they are looking for ways to get more value from their weekly shop or reduce how much they spend.
Of those seeking savings, 55 per cent are looking out for loyalty scheme discounts and deals, 51 per cent are using vouchers or loyalty points to obtain money off their shopping, and half (50 per cent) are buying more discounted items.
Almost half (48 per cent) of Brits report planning to cut down on discretionary spending, however two in five (40 per cent) said they were treating themselves and their loved ones in December, despite the impact on their household finances.
The overall retail sector slipped -0.2 per cent in the month, however, in the wake of Black Friday and Cyber Monday, gift shopping and seasonal discounts spurred growth of 1.6 per cent at general retailers, following a -1.7 per cent decline in November. Pharmacy, health & beauty finished the year on a high, having performed strongly throughout all of 2024, benefitting from a 5.8 per cent uplift.
Growth in online shopping outpaced in-person sales, with online retail (excluding groceries) up 2.6 per cent, while face-to-face retail (excluding groceries) declined -1.2 per cent. One in five (17 per cent) shoppers reported buying online more frequently in the month, opting to purchase Christmas gifts from the comfort of their homes.
Looking ahead, 35 per cent of Brits plan to participate in ‘dry January’ this year. Of this group, two fifths (40 per cent) are trying to be healthier, while one in five (22 per cent) want to reduce their spending on alcohol. Those taking part anticipate saving £57.70 each on average.
One in four (24 per cent) are planning to give ‘Veganuary’ a go in 2025, with health once again emerging as the top motivating factor, chosen by 34 per cent of those participating. A quarter (26 per cent) also say they’re trying to eat fewer processed foods.
Health and fitness is high on the agenda for those making New Years resolutions more broadly, chosen by 31 per cent of this group. Financial wellbeing is also a clear priority; over one in four (27 per cent) of those setting goals for 2025 want to save more each month, while 24 per cent plan to cut back on takeaways.
Karen Johnson, Head of Retail at Barclays, said “Consumers demonstrated their ability to carefully manage their money once again in December, finding ways to save while still sprinkling in some cheer, setting aside funds to treats themselves and loved ones over the festive period.
“Brits are also planning to prioritise memorable moments in 2025, with travel emerging as a clear spending priority. Health is also held in high regard; those making New Year’s resolutions will cut back on pub trips, but spend on healthier alternatives to nights out.”
Jack Meaning, Chief UK Economist at Barclays, said “As 2024 closed, consumers remained cautious, in line with muted confidence, elevated uncertainty and high rates of saving. In 2025, we expect household consumption to grow by less than 1 per cent, ahead of further interest rate cuts from the Bank of England over the course of the year.”
Overall growth figures:
| Spend Growth | Transaction Growth | |
| Essential | -3.0% | -3.0% |
| Non Essential | 1.5% | 2.0% |
| OVERALL | 0.0% | 0.1% |
| Retail | -0.2% | -1.2% |
| Clothing | -0.7% | 0.2% |
| Grocery | -1.9% | -2.9% |
| · Supermarkets | -2.0% | -2.5% |
| · Food & Drink Specialist | -0.9% | -4.6% |
| Household | -0.3% | 5.0% |
| · Home Improvements & DIY | -3.1% | -3.9% |
| · Electronics | 0.8% | 14.5% |
| · Furniture Stores | 1.7% | 4.3% |
| · Garden Centres | 3.1% | 0.4% |
| General Retailers | 1.6% | 0.5% |
| · General Retailers & Catalogues | 2.5% | 0.5% |
| · Department Stores | -0.6% | 1.7% |
| · Discount Stores | 0.2% | -0.7% |
| Specialist Retailers | 1.8% | -1.5% |
| · Pharmacy, Health & Beauty | 5.8% | -0.5% |
| · Sports & Outdoor | -2.5% | -4.2% |
| · Other Specialist Retailers | 0.5% | -1.9% |
| Hospitality & Leisure | 3.5% | 2.8% |
| Digital Content & Subscription | 7.5% | 5.2% |
| Eating & Drinking | 1.1% | 0.7% |
| · Restaurants, Cafes & Bakeries | 1.1% | -1.1% |
| · Bars, Pubs & Clubs | 1.3% | -0.3% |
| · Takeaways and Fast Food | 0.9% | 3.6% |
| Entertainment | 6.0% | 13.2% |
| Hotels, Resorts & Accommodation | 3.6% | 1.0% |
| Travel | 4.7% | 3.4% |
| · Travel Agents | 7.5% | 17.8% |
| · Airlines | 3.6% | -0.8% |
| · Public Transport | -0.3% | -1.0% |
| · Other Travel | 6.2% | 12.7% |
| Other | -4.0% | -1.8% |
| Fuel | -11.6% | -6.5% |
| Motoring | -7.4% | 3.8% |
| Other Services | 2.4% | 0.6% |
| Insperiences | 3.3% | 4.0% |
| Online | 2.3% | 3.4% |
| Face-to-Face | -1.7% | -1.4% |