Consumer spending jumps 10.6 per cent in 2022 amid surging inflation, Barclaycard research reveals

New data from Barclaycard has revealed consumer card spending increased 10.6 per cent year-on-year as spending was boosted by the easing pandemic restrictions compared with 2021.

Nevertheless, it came amid soaring inflation and experts at the credit card business warned that shoppers are likely to face further headwinds in 2023.

The Office for National Statistics (ONS) recorded inflation of 10.7 per cent in November against the same month last year, amid a slight slow-down from the 40-year-high of 11.1 per cent it had struck the previous month.

Inflation over the past year has been largely spurred by higher energy costs for households and businesses, who have passed some of their cost increases to customers.

Barclaycard said their data showed that spending on utilities grew by 32.9% over the year as energy costs increased.

Britons also going out to pubs, restaurants and bars due to pent-up demand following the pandemic, according to the figures.

Spending on restaurants grew by 37.1 per cent for the year, while pubs, bars and clubs recorded a 53.6 per cent increase.

Esme Harwood, director at Barclaycard, said the end of lockdown measures had contributed to the figures.

“The lifting of all Covid restrictions meant card spending was up overall compared to last year,” she said.

“Hospitality, leisure and travel all received a boost as Brits made up for lost time by socialising with friends and jetting off on holidays.”

Meanwhile, high street retailers also received a welcome boost, with sales increasing by 8.3 per cent.

However, the retail sector as a whole saw spending decline as there was a 12.2 per cent fall in online shopping spending as people tightened their purse strings.

Ms Harwood said: “The cost-of-living squeeze has clearly impacted the retail sector.

“Consumers have had to rein in spending on purchases like subscriptions and home improvements, as well as reduce their basket sizes in general.

“As these inflationary pressures continue, all categories are likely to face further headwinds in 2023.

“However, I am optimistic that both consumers and businesses will continue to find ways to adapt and respond to these challenges, as they did throughout the pandemic.”

Retail expert Harry Wallop said: “2022 has been a contrasting year for retail and consumer spending. On one hand, the pent-up demand from the pandemic for trips abroad and evenings out has given a sizeable boost to some key sectors. In turn, this has had a positive impact on categories such as clothing and health and beauty.

“On the other hand, consumers are increasingly conscious about the cost of the items they’re buying. Many are changing their behaviours to monitor their outgoings. As we head into next year, it’s likely that Brits will remain in a similar mindset – keen to conserve their cash where possible but also happy to splash out on items and experiences that give them a boost once in a while.”