Restaurants saw a further decline in spending in August (-5.8 per cent) from July (-2.5%), while bars, pubs & clubs saw their lowest growth (2.8%) since October 2022, according to Barclaycard.

Over half (52%) of Brits are reining in discretionary spending due to rising household bills, with eating out at restaurants (61%) and ordering takeaways (58%) the non-essentials most de-prioritised.

This comes as takeaways and fast-food recorded a smaller uplift (6.4%) compared to July (9.2%), while the rainy weather in the first half of August also led to fewer Brits visiting the high-street.

Total consumer card spending grew 2.8% year-on-year in August – lower than the latest CPIH* inflation rate of 6.4% and July’s growth figure of 4% – as rainy weather cast a cloud on the high street.

However, entertainment provided a boost, prompted by a surge in cinema ticket sales for Barbie and Oppenheimer.

While the wetter weather, combined with the slowing rate of inflation, meant spending on non-essential items saw less growth (3.7%) than July (5.6%), there were some bright spots across the retail, hospitality and leisure sectors.

Entertainment continued to perform well (12%), driven by a 101% surge in cinema spending as Brits booked tickets to watch this summer’s big blockbusters.

A fifth (19%) of Brits say that, despite the rising cost-of-living, spending on experiences is still a priority, with holidays abroad (44%) and hotel stays (22%) cited as the top purchases among this group.

To ensure they can afford to spend on memorable moments, 27% of these consumers are cutting back on takeaways and fast-food, while a fifth (19%) are reducing costs associated with socialising.

Over half (52%) of Brits have noticed that some of the food and drink products they buy have been downgraded in terms of quality or the quantity of premium ingredients, known as “skimpflation”.

A fifth feel takeaways (22%) and restaurant meals (20%) are decreasing in quality without a corresponding fall in price.

Esme Harwood, director at Barclays, said: “The rainy weather impacted high street and hospitality venues in August, but Brits were still keen to spend on memorable summer experiences. The huge Box Office success of ‘Barbie’ and ‘Oppenheimer’ meant entertainment enjoyed another strong month, while holidays abroad boosted international travel and pharmacy, health & beauty stores.

“Shrinkflation – and now “skimpflation” – are increasing concerns for value-seeking shoppers. However, Brits’ confidence in their household finances is unwavering, suggesting they remain resilient in the face of these inflationary pressures.”

Abbas Khan, UK Economist at Barclays, said: “Muted spending growth in August is in line with other data sources, such as soft PMIs and stalling consumer confidence, suggesting that the bite from monetary tightening is starting to be felt more acutely.

“However, with further moderation in inflation and strong wage growth set to support real household disposable incomes, we continue to think the economy will avoid a recession in the coming quarters, even if growth is only set to be sluggish.”