Spending on household essentials has dropped rapidly in five years as waning consumer confidence impacts purchasing behaviour.
According to Barclays data, supermarket spending fell by 1.8% in November, while overall spending on essentials, including groceries and fuel, declined by 3.1%—the steepest fall since Barclays began tracking the data in 2019.
Barclays reported that two-thirds of shoppers actively seek ways to cut costs on their weekly grocery bills, reflecting growing concerns about the UK economy’s outlook.
Overall spending on debit and credit cards fell 0.5% compared to the same month last year. Jack Meaning, Barclays’ chief UK economist, commented:
“Understandably, a number of factors weighed on consumer spending in November, notably weaker consumer confidence following the summer and expectations that post-Budget, inflation and interest rates will remain elevated in the months ahead.”
Barclays noted a sharp decline in confidence in both the UK and global economies last month, with inflation remaining a primary concern for consumers.
