Despite the fact that UK consumer spending grew just 2% year-on-year in March – compared to +3.8% in February – Barclaycard data reveals that spending was up 7.2% in restaurants and +7.7% in pubs.
That said, compared to the previous month, which saw spending up 9.7% in restaurants and 10% in pubs, non-essential spending still saw a dip in growth, with 45% of consumers claiming the cold weather led them to “rein in on leisure and experience spending.”
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Spending on ‘nice-to-haves’ meanwhile increased by 1.1% and by +3.8% on ‘essentials.’
Signs of stability also extended to consumer sentiment, 64% of Brits saying they are now “confident in their household finances” – up 10 percentage points from February and the best reading since October 2017.
A third, however, remain “less confident” in their ability to save money for a rainy day, and a quarter about covering the cost of a night out.
Barclaycard managing director, Paul Lockstone, explained: “The ‘Beast from the East’ took its toll on the high street in March, keeping shoppers at home and leading to a slowdown in consumer spending. Despite the dip in growth last month, however, expenditure was broadly stable in the first quarter.
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By GlobalData“It seems consumers have become accustomed to adjusting their budget and as a result, are more confident in their own finances. While there are bright spots, however, it’s important to note that a sense of caution still remains, with many of us (49%) hesitant to change our spending patterns no matter what the next few months may bring.”
