Proactive Investors - Consumer credit card spending last month grew at the slowest rate in over three years, with households deciding to limit spending on non-essential items, especially take-away food.
Data from Barclaycard showed card spending growth of 1.0% year-on-year in May, the smallest rise since February 2021.
Spending on non-essential items of 0.7% was the lowest since early 2021, with spending on takeaways and fast food declined 0.2%, the first fall since the pandemic, and eating out at restaurants seeing a decline of 15.7%, worse than the 13% fall in April.
Barclays (LON:BARC) said 44% of polled consumers said they are reducing discretionary spending, with more than half seeing takeaways and restaurant visits as their main cutbacks.
Spending at supermarkets was just above flat, at 0.3% the lowest growth since June 2022, while airlines saw a 5.6% uplift their smallest uplift in almost three years.
Consumers were reported to be feeling optimistic about inflation, with 28% planning to spend more when the weather improves.