December consumer spending grew but retail spending stalled

Consumer card spending grew 2.3 percent year-on-year in December 2023, less than the latest Consumer Prices Index inflation rate of 4.2 percent and lower than November’s growth of 2.9 per cent, according to the latest data from the Barclays Consumer Spend report.

While entertainment and travel bookings thrived, Barclays said that retail spending “struggled to maintain the momentum” it had built up in November through early seasonal discounts.

The report notes that while December 22 was the busiest day of the year, both clothing and department stores fell back into decline. Spending on clothing dropped by 2 percent, while department stores was down 0.2 percent after a spike in November.

Karen Johnson, head of retail at Barclays, said in a statement: "Hospitality and leisure businesses will be encouraged by December’s strong growth, particularly in the entertainment category, which saw growing demand for live shows, new films and TV series.

“Meanwhile, grocery and retail spending didn’t see as much of an increase as we might have expected during the height of the festive season. This is likely due to many retailers and supermarkets starting discounts and promotional activity earlier than usual, meaning that many Brits had been making the most of these deals and completed most of their Christmas shopping by December.”