UK retail spending slows in December 2023: Barclays report

The country saw a decline in spending in specific sectors, with clothing and department stores experiencing decreases of 2 per cent and 0.2 per cent, respectively. This downturn follows a notable spike in November, attributed to retailers initiating festive promotions earlier in 2023. The early start to holiday discounting encouraged consumers to purchase Christmas party outfits and gifts in November, leading to reduced spending in December, as per the report.

Furthermore, spending on essential items decelerated, registering a 1.8 per cent rise compared to the 3.3 per cent increase seen in November. On the other hand, expenditure on non-essential items went up by 2.5 per cent. This increase is largely due to heightened spending in the leisure sector, which saw an 8.9 per cent boost, driven by festive activities and celebrations.

Another significant factor affecting consumer behaviour is the energy price cap rise introduced on January 1. This change has caused concern among nearly nine in ten Britons (87 per cent), who are worried about the impact of escalating household bills on their personal finances.

A growing number of consumers are feeling more confident about their household finances, with 67 per cent expressing optimism—the highest level since August 2023. Additionally, 73 per cent of Brits feel confident about living within their means each month, marking the highest sentiment since November 2021.

Fibre2Fashion News Desk (DP)