Consumer spending falls in January

Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, reveals that spending on essential items grew 3.9%. The figure was bolstered by a 17% rise in overall supermarket spending, with online supermarket spend seeing significant growth (126.8%). This was driven by a surge in demand for home deliveries, with almost 37% of Brits saying they found it harder than ever to secure a delivery slot.

However, fuel, saw its sharpest decline (-32.3%) since June 2020 (-33.8%), as prices at the pump continued to fall and more Brits stayed at home.

The research found just 40% of Brits were confident in their job security this month – dropping 10% from last January to the lowest level in over a year. However, confidence in household finances stayed steady at 67%, but younger Brits (18-34-year-olds) are feeling considerably less confident (55%) than the over 55s (78%).

Raheel Ahmed, head of consumer products, said: “We have seen a surge in many online categories as the demand for home deliveries continues to rise. From meal kits and subscription services, to online grocery shopping, Brits have continued habits they formed in the first lockdown, with a record high seen in spending on takeaways and fast food.

“While confidence in job security has reached its lowest point in over a year, the ongoing vaccine rollout means that Brits believe there is hope on the horizon, and we all look forward to being reunited with much-missed family and friends later in the year.”