Pubs, bars, & clubs saw a 6.4% boost in consumer card spending in May 2023 compared to 2022, fuelled by bank holiday weekends, according to new spending data from Barclaycard.
Overall consumer card spending grew just 3.6% year-on-year – less than half the CPIH rate of 7.8% - while restaurants saw another month of decline at -5.3%.
However, the pubs, bars, & clubs, along with the entertainment sector, saw a welcome uplift. Insperiences also proved popular, with takeaways seeing its highest increase so far this year at 13.1%.
Spending on airlines increased 34.4% with the arrival of summer, causing hotels, resorts, and accommodation to see a 4.9% decline as demand for staycations tapers with holidaymakers opting to travel abroad.
Food price inflation pushed grocery spending to its highest growth in two years, surging 8.9% year-on-year and also receiving a boost from consumers buying food and drink for street parties and at-home celebrations for the Coronation and Eurovision.
Despite persistent cost-of-living pressures, Brits are generally feeling confident in their household finances (64 %) and ability to live within their means each month (68%). Meanwhile, confidence in the future of the UK economy has slightly increased, rising from 25% to 28%.
Esme Harwood, director at Barclays, said: “Consumers are still paying close attention to their everyday spending, and we are seeing growing concerns around “shrinkflation” in the weekly shop. Many are having to forgo discretionary purchases to offset rising food prices, with clothing and restaurants most impacted.
“However, the growth witnessed at pubs, airlines and entertainment venues shows that Brits are still finding room in the budget to enjoy nights out and holidays.”
Silvia Ardagna, head of European economics research at Barclays, said: “Although the latest headline figures show that inflation has fallen due to lower energy prices, the prices of core services and goods remain stubbornly high and continue to constrain real household disposable income and spending.
“The UK economy has escaped a technical recession for now, but the forward-looking outlook remains one in which the economy is likely to stagnate as the impact of monetary tightening will more than offset the relief from lower energy prices.”
