UK Consumers Adapt to Rising Living Costs: Cutting Back on Luxuries, Seeking Discounts
- Spending on essential items dropped in April due to inflation and rising living costs
- Consumer card spending overall grew 18.1% compared to pre-pandemic levels
- Shoppers are cutting down on luxuries and buying budget/own brand goods
- Confidence in ability to spend on non-essential items remains steady at 52%
- Clothing and department stores see growth after months of decline
- 17% of Brits spending more on special occasions like weddings and holidays
Spending on essential items has dropped in April due to inflation and rising living costs, according to Barclaycard research. Despite this, consumer card spending overall grew by 18.1% compared to the same period in 2019. Shoppers are cutting down on luxuries and opting for budget or own-brand goods. However, confidence in spending on non-essential items remains steady at 52%. Clothing and department stores see growth after months of decline, while 17% of Brits plan to spend more on special occasions like weddings and holidays. The upcoming Platinum Jubilee Weekend and summer months may provide opportunities for celebrations.
Factuality Level: 8
Factuality Justification: The article provides accurate information about changes in consumer spending patterns due to inflation and rising living costs, citing research from Barclaycard as its source. It presents relevant data on essential and non-essential item spending, and includes quotes from a relevant expert. However, it could be improved by providing more context or background information on the economic situation and the impact of the Platinum Jubilee Weekend.
Noise Level: 6
Noise Justification: The article provides relevant information about changes in consumer spending patterns due to inflation and rising living costs but also includes some filler content such as the mention of the Platinum Jubilee Weekend and summer months, which may not be directly related to the main topic. It could have focused more on the long-term trends or consequences of these changes without diving into unrelated events.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector and consumer spending
Financial Rating Justification: The article discusses changes in consumer spending patterns due to inflation and rising living costs, which can impact retail companies and their financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in this article.
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