Proactive Investors - The growth in consumer card spending slowed sharply in 2023 as shoppers cut back wary of the tough economic climate, according to new figures.
Data from Barclays (LON:BARC) showed card spending rose just 4.1% year-on-year in 2023 – noticeably lower than the growth seen in 2022 (10.6%) – as consumers cut back on buying new clothes, eating out and investing in home improvements amid rising inflation and household bills.
However, Barclays said consumers continued to prioritise “moments of joy and shared experiences,” boosting travel (+15.2%), entertainment (+7.5%), and pubs & bars (+5.9%).
The report also showed an increased awareness of “skimpflation” and “shrinkflation” with 76% of consumers noticing examples of shrinkflation when shopping, with chocolate (48%), crisps (41%) and packs of biscuits (38%) the most cited products impacted.
To offset mounting bills, Brits spent less on eating out in 2023, with restaurants seeing a 6.7% decline compared to 2022, the report showed.
But the entertainment sector saw spending jump 7.5% boosted by the release of ticket sales for major events including the Eurovision Song Contest, Taylor Swift’s ‘Eras’ tour, and Beyoncé’s ‘Renaissance’ tour.
Blockbuster hits including ‘Barbie’, ‘Oppenheimer’ and ‘Avatar: The Way of Water’ fuelled a 6.3% increase in cinema spending.
The travel sector continued to thrive with both travel agents (10.4%) and airlines (30.8%) seeing robust growth.