Consumer spending growth falls as festive shopping fails to boost high street
Consumer spending growth fell year-on-year in November to its lowest level since March as falling confidence continues to impact struggling retailers.
Growth in consumer spending was just 3.3 per cent, dragged down by poor sales in the retail sector, according to new figures from Barclaycard.
The figure is the lowest since March this year, when retailers were buffeted by the Beast from the East.
The research shows spending ahead of the festive period failed to buoy sluggish sales on the high street. Department stores were hit particularly hard, seeing their spending contract by 7.1 per cent.
But entertainment remained relatively strong, with ticket sales rising 30.5 per cent, spurred on by the Spice Girls reunion tour. Spending was also up at pubs and restaurants.
Barclaycard director Esme Harwood said: “November was a mixed month, with department store and clothing spending contracting but entertainment remaining strong.
“It seems shoppers are yet to make their main Christmas purchases for friends, family and loved ones, despite many retailers offering Black Friday discounts to try and boost sales.”
The figures reflect a cautious mood among consumers in the run-up to Christmas. Only 52 per cent of UK adults say they have confidence in their household finances, according to Barclaycard.
The weak growth comes after a disappointing Black Friday for brick and mortar retailers. Footfall during the sale dropped this year amid a growing shift towards online shopping.