Consumer card spending growth remained flat in December, at 0.0 per cent year-on-year – significantly lower than the latest CPIH inflation rate of 3.5 per cent.
Cutbacks in essential categories were offset by growth in discretionary spending, supported by another “Wicked” performance from entertainment (up 6.0 per cent) and Brits planning holidays for 2025, boosting travel 4.7 per cent.
Essential spend dropped by -3.0 per cent in December, as lower petrol prices again impacted fuel spending (-11.6 per cent) and Brits made cutbacks while facing inflation concerns; nine in 10 adults said they were concerned about both rising food prices (86 per cent) and household bills (87 per cent).
For Brits looking for ways to make savings, half (49 per cent) said they are planning to cut back on eating out in restaurants, while 38 per cent said they were looking to reduce how much they spend on drinks in bars, pubs and clubs. This, combined with “quad-demic” illnesses taking hold, meant both categories saw modest growth in December, with Restaurants, Cafes & Bakeries up just 1.1 per cent, while spending at Pubs, Bars & Clubs climbed 1.3 per cent, down from 2.1 per cent and 3.5 per cent respectively in November.
Almost half (48 per cent) of consumers said they are planning to cut down on discretionary spending, however two in five Brits (40 per cent) said that they treated themselves and their loved ones in December, despite the impact on their household finances.
Looking ahead, 35 per cent of Brits plan to participate in ‘Dry January’ this year. Of this group, two fifths (40 per cent) are doing so because they are trying to be healthier, while one in five (22 per cent) want to reduce their spending on alcohol. Those taking part anticipate saving £57.70 each on average.
One in four (24 per cent) are planning to give ‘Veganuary’ a go in 2025, with health once again emerging as the top motivating factor, chosen by 34 per cent of those participating. One in four (26 per cent) say they’re trying to eat fewer processed foods.
Health and fitness is high on the agenda for those making New Years resolutions more broadly, chosen 31 per cent of this group. Financial wellbeing is also a clear priority; over one in four (27 per cent) of those setting goals for 2025 want to save more each month, while 24 per cent plan to cut back on takeaways.
Fed up with the dreary UK weather, the travel sector continued its strong performance in December (4.7 per cent) as Brits booked international trips to sunnier climes and made the most of the early arrival of fresh powder at ski resorts across Europe. Travel agents saw a 7.5 per cent increase, potentially helped by ‘Travel Tuesday’ deals in late November. Three quarters (74 per cent) of consumers plan to travel in 2025, suggesting this momentum will continue into the new year.
Karen Johnson, Head of Retail at Barclays, said: “Consumers demonstrated their ability to carefully manage their money once again in December, finding ways to save while still sprinkling in some cheer, setting aside funds to treats themselves and loved ones over the festive period.
“Brits are also planning to prioritise memorable moments in 2025, with travel emerging as a clear spending priority. Health is also held in high regard; those making New Year’s resolutions will cut back on pub trips, but spend on healthier alternatives to nights out.”
