Over half (52%) of Brits are reining in discretionary spending due to rising household bills, with eating out at restaurants (61%) and ordering takeaways (58%) the nonessentials most de-prioritised.
This comes as takeaways and fast-food recorded a smaller uplift (6.4%) compared to July (9.2%), while the rainy weather in the first half of August also led to fewer Brits visiting the high-street.
Total consumer card spending grew 2.8% year-on-year in August – lower than the latest CPIH* inflation rate of 6.4% and July’s growth figure of 4% – as rainy weather cast a cloud on the high street.
However, entertainment provided a boost, prompted by a surge in cinema ticket sales for Barbie and Oppenheimer.
While the wetter weather, combined with the slowing rate of inflation, meant spending on non-essential items saw less growth (3.7%) than July (5.6%), there were some bright spots across the retail, hospitality and leisure sectors.
Entertainment continued to perform well (12%), driven by a 101% surge in cinema spending as Brits booked tickets to watch this summer’s big blockbusters.
A fifth (19%) of Brits say that, despite the rising cost-of-living, spending on experiences is still a priority, with holidays abroad (44%) and hotel stays (22%) cited as the top purchases among this group.
To ensure they can afford to spend on memorable moments, 27% of these consumers are cutting back on takeaways and fast-food, while a fifth (19%) are reducing costs associated with socialising.
Over half (52%) of Brits have noticed that some of the food and drink products they buy have been downgraded in terms of quality or the quantity of premium ingredients, known as 'skimpflation'.
A fifth feel takeaways (22%) and restaurant meals (20%) are decreasing in quality without a corresponding fall in price.
Esme Harwood, director at Barclays, said: “The rainy weather impacted high street and hospitality venues in August, but Brits were still keen to spend on memorable summer experiences. The huge Box Office success of Barbie and Oppenheimer meant entertainment enjoyed another strong month, while holidays abroad boosted international travel and pharmacy, health and beauty stores.
“Shrinkflation – and now 'skimpflation' – are increasing concerns for value-seeking shoppers. However, Brits’ confidence in their household finances is unwavering, suggesting they remain resilient in the face of these inflationary pressures.”
