Consumer spending on debit cards climbed by 27% in the first two weeks of 2021 compared to last year, data published by Lloyds Bank has indicated.

Compared to the first two weeks of January in 2020, this year has seen a 42% rise in card spending at restaurants and bars, 34% increase at high street stores, and 22% jump in recreational spending.

With all nations from the UK under work from home guidance this month, the data also showed that commuting spend fell by 13%.

Almost a third (30%) of all retail card spending was online in the first two weeks of January, compared to 21% in January 2020.

“Consumer spending behaviour, as we have seen over the past 18 months, reacts quickly to changes in government guidance,” commented Lloyds payments director, Gabby Collins.

“Looser restrictions over Christmas and the New Year helped spending surge in 2022, compared to both pre-pandemic 2020 and January lockdown 2021, and the pandemic has generally encouraged more people to use their cards for everyday spending.

“While the increase in spending could be considered a sign of consumers ongoing resiliency, rising inflation and concerns around the cost of living could leave a lasting impression on household finances. As we have seen before, spending power is likely to continue to be dictated by the impact of the pandemic on the wider economy.”

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