Consumer card spending increased by 3.5% year-on-year in October, new data published by Barclaycard has revealed.

The figure is higher than the growth reported in September (1.8%) but remains below the 8.8% rise in consumer price inflation, as the cost of living crisis continues to place pressure on UK consumers’ personal finances.

Data from Barclaycard, which sees almost half of the UK’s credit and debit card transactions, revealed that spending on essential items – such as fuel and groceries – increased by 5.7% year-on-year.

This was steeper than September’s growth of 3.3%, which the bank suggested reflects the impact of rising inflation.

Against a backdrop of political and economic uncertainty, Barclaycard also conducted a consumer confidence survey in October, based on a study of 2,001 respondents. This research indicated that confidence in the UK economy fell sharply to 15% – the lowest level recorded since 2015, when Barclaycard began tracking this data – and less than half the level it was at this time last year (31%).

Meanwhile, 92% of consumers are worried about the negative impact of rising inflation on their personal finances, with 30% assessing whether every individual purchase is necessary, and a fifth (19%) feeling that the cost of living squeeze is having a negative impact on their mental health.

Director at Barclaycard, Esme Harwood, commented: “Rising petrol and supermarket costs continue to bite, but Brits are spending less on energy bills as government support kicks in and people find ways to economise at home.

“Consumers continue to swap big nights out for cosy evenings in as they reduce their discretionary spending, while health & beauty and home improvements enjoy a little boost.

“With the festive season around the corner, we’re likely to see further cutbacks, as Brits reign in their Christmas spending. Consumers are adopting a restrained approach to festivities, reaching for pre-loved gifts and setting spending limits to manage their costs during this traditionally expensive time of year.”

Share Story: