Consumer spending down in September, but furniture and flooring see growth

Data from Barclays Bank has shown that consumer spending declined -0.7 per cent year-on-year in September, down from 0.5 per cent growth in August and lower than the latest CPIH inflation rate of 4.1 per cent. According to the bank, essential spending fell -2.6 per cent, while growth in discretionary spending slowed to 0.2 per cent. Clothing, furniture and beauty all had strong months, however, as affordable, ‘”pick-me-up” purchases were prioritised amid wider cutbacks.

Karen Johnson, Head of Retail at Barclays, said: “It is encouraging to see that UK consumers feel confident in their ability to manage their budgets, amid ongoing cost of living concerns. We’re continuing to see cautious spending, and shoppers are consistently seeking out areas they can cut back on. However, multiple retail categories have proven to be resilient in recent months, with furniture, clothing, and beauty all remaining in growth since February of this year.”