Proactive Investors - UK consumer spending rose four per cent year-on-year in March as spending on digital content and streaming subscriptions saw the highest rise in five months.
Expenditure on streaming and other digital services increased by 4.1% compared to a year earlier according to Barclays’ card transaction data, though spending on food and other 'essentials' fell in relative terms.
New series of You on Netflix (NASDAQ:NFLX), Succession on Warner Bros owned HBO Max, The Mandalorian on Disney+ and Apple (NASDAQ:AAPL) TV's Ted Lasso, all released in March, likely tempted people back onto streaming services as they cut back elsewhere, said the bank
Grocery spending grew by 7.1% meanwhile, though this was well below Office for National Statistics-tracked food price inflation of 18.2%.
“The below-inflation rise in grocery spending shows that Brits are still trying their hardest to shave money off their weekly shop, as energy bills continue to rise,” Barclays (LON:BARC) director Esme Harwood said.
Spending on utilities rose 39.3% as the impact of energy bill rises came through and was also prompted by colder weather in March compared to last year, said the report.
Some 88% of respondents said they were worried about the impact of rising household bills on their finances with 58% concerned about their ability to afford energy bills this coming autumn and winter.
“In this light, it is not surprising that consumers are moderating spending," Barclays' head of European economics, Silvia Ardagna commented.