Brits Seek Value Amidst Inflation and Economic Uncertainty
- Consumer card spending increased by 13.7% year-on-year in February.
- Spending on essential items rose 12%, driven by fuel prices.
- Supermarket shopping grew 12.9% but at the slowest pace since Feb 2020 due to rising costs.
- 59% of Brits seek greater value for money in their weekly shop.
- 45% opt for budget or own-brand goods over branded items.
- Non-essential spending up 14.5%, highest since Nov 2021.
- Clothing and department stores see growth after declines.
- Pharmacy, health & beauty stores up 13.9%.
- Digital content and takeaways surged due to storms Eunice and Franklin.
- 63% of consumers feel slightly less optimistic about finances.
- Inflation, food prices, and energy bills are top concerns for Brits.
- Barclaycard: Shift in spending habits as people seek value.
Consumer card spending in the UK surged by 13.7% year-on-year in February, marking the highest growth since November 2021 as the economy reopened following the lifting of Plan B restrictions. Essential item spending rose 12%, driven by a 11.2% increase in fuel prices and easing work-from-home guidance. Supermarket shopping grew 12.9%, albeit at the slowest pace since February 2020 due to rising living costs. As a result, 59% of Brits are seeking greater value for money when grocery shopping, with 45% opting for budget or own-brand goods over branded items. Non-essential spending saw a ‘strong’ 14.5% growth, the sharpest increase since November 2021, as people resumed discretionary purchases, holidays, and experiences. Clothing and department stores also experienced growth after declines in January and December. Pharmacy, health, and beauty stores rose 13.9%. Digital content and takeaway spending surged due to storms Eunice and Franklin. However, 63% of consumers feel slightly less optimistic about their household finances, with inflation, food prices, and energy bills as top concerns for 89% of Brits, and 46% expecting inflation’s impact on budgeting in 2022.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about consumer card spending trends in the UK following the lifting of Plan B restrictions. It includes data from Barclaycard and quotes from José Carvalho, head of Consumer Products at Barclaycard, to support its claims. The article also presents a balanced view on the increase in spending on both essential and non-essential items, as well as the impact of inflation on consumer behavior.
Noise Level: 7
Noise Justification: The article provides relevant information about consumer card spending trends and how it is affected by the lifting of restrictions and inflation. However, it contains some repetitive phrases and uses exaggerated language in describing the growth of non-essential items as ‘sharpest’ and ‘strongest’. It also dives into unrelated territory with mentioning storms Eunice and Franklin without providing a clear connection to consumer spending.
Financial Relevance: Yes
Financial Markets Impacted: Consumer card spending and various sectors such as fuel, supermarkets, non-essential items, clothing, department stores, and pharmacy/health/beauty stores
Financial Rating Justification: The article discusses changes in consumer spending patterns due to the lifting of COVID-19 restrictions and its impact on different sectors, which can affect companies’ revenues and financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.
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